Will the iPhone faithful bear the brunt of trade wars?

How new tariffs will increase the cost of your next iPhone

Last week’s new tariff on Chinese goods levies a 25% fee on electronics (and about all other) products from China. While your iPhone is designed in Cupertino, it is assembled in China and subject to the new tariff. Outcomes for device makers such as Apple, assuming no settlement is reached in the near term, include passing on the fees to consumers, estimated to be a 14% increase, reducing profitability by subsidizing the tariff, moving their manufacturing to Vietnam, India or even the U.S. Wired

dis-rup-shun: Given the recent decrease in growth rates of smartphone sales, it is unlikely Apple will pass costs on to consumers, especially since its primary smartphone competitor, Samsung, makes phones in South Korea and is not subject to new tariffs. The tariffs are, however, a reminder of the need for multiple sources in multiple locations.

The future of work is less about structure and more about values

At Atlassian’s Future of IT conference, 13 takeways on the future of work elaborate on three themes: 1. technology has made traditional structures such as titles, locations, academic majors, and organizational teams mostly irrelevant to outcomes, 2. the value of a company is the quality of its talent base, 3. lifestyle balance and purpose, more than income, make a company healthy and happy. ZDNet

dis-rup-shun: Video conferencing tools have made location nearly irrelevant for knowledge industries. Collaboration tools, including email, eliminated the boundaries of a traditional 8 to 5 workday nearly two decades ago, forcing workers to determine how much of their personal lives they are willing to give to the corporation. For this reason, purpose and the pursuit of well-being for stakeholders have become critical management mandates for a sustainable corporation, including increasing shareholder returns.

Samsung S11 Galaxy expected to be a design game changer

Early glimpses of the upcoming Samsung S11 smartphone indicate that the device will not only provide a groundbreaking 64 megapixel camera, but will be a design masterpiece. T3

dis-rup-shun: Camera innovation is the theme of the current smartphone battles, with the devices providing stunningly beautiful photos. With the pace of new smartphone features slowing and prices remaining high, shifts in market share will be very difficult to win. Samsung’s smartphones are improving more quickly than iPhones, slowly chipping away at Apple’s share, but the Apple faithful will continue to consider the Android experience too large a step from the comfortable iOS interface.

 

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