*By Michael Teich*
Though iPhones and Mac computers made in China have been spared U.S. tariffs, the brewing trade war between Washington and Beijing could finally catch up with Apple, the world's most valuable publicly traded company.
None of the tariffs considered by the Trump administration so far have materially affected Apple's business, but in his third-quarter earnings call with analysts on Tuesday, Apple's CEO Tim Cook said it was too early to predict if other policies under consideration could affect the company's bottom line.
"Our view on tariffs is that they show up as a tax on the consumer and wind up resulting in lower economic growth," Cook said in Tuesday's call.
Mike Murphy of Quartz told Cheddar that consumers' willingness to pay for Apple's most expensive productーthe iPhone Xーis a good sign that even a trade-war inspired bump in prices for its other devices won't deter loyal iPhone users.
"If we have no problem buying a $1,000 phone, we'll probably have no problem buying a $1,100 phone," Murphy said in an interview Wednesday. The iPhone represents Apple's biggest source of revenue.
If tariffs were to hit Apple, they would likely affect the company's fastest-growing division, "Other Products," which includes Apple Watch, AirPods, and the HomePod.
Revenue from other products reached $3.74 billion in the third quarter, up 36 percent from a year earlier. Apple doesn't disclose exact numbers for the Apple Watch, but Cook said sales grew in the "mid-40 percent range."
Apple does not appear worried about the prospect of tariffs dampening its business. The Cupertino-based company delivered fiscal fourth quarter revenue guidance of between $60 billion and $62 billion, topping Wall Street's estimate of $59.47 billion, according to StreetAccount.
For full interview, [click here](https://cheddar.com/videos/apple-spared-trumps-tariffs-for-now).
On this episode of Cheddar Innovates: CEO of HereAfter AI discusses how artificial intelligence can be used to preserve family history and stories, and allow you to 'talk' to loved ones that have passed; Creator of the board game 'Travel Explore Discover' explains how she came up with the idea for this informative and educational board game, and how she's using the proceeds to give back to her community; Cheddar gets a look at Curiosity Stream's 'The Humboldt Current.'
James Vlahos, Co-Founder and CEO of HereAfter AI, joins Cheddar Innovates to discuss how artificial intelligence can be used to preserve family history and stories, and allow you to 'talk' to loved ones that have passed.
Facebook parent Meta’s miss on Q4 earnings raised alarm bells amongst investors. The tech giant lost users for the first time as it invests a lot into the metaverse, its virtual realm, in the hopes that consumers will move their social media consumption there. The stock dropped around 25 percent on the report, and CEO Mark Zuckerberg chalked it up to people flocking toward apps like TikTok, even as his own platform attempts to make a big pivot to the metaverse future. "It's gonna take a long time to develop and it's gonna take a long time to bring to fruition," Rebecca Walser, president of Walser Wealth Management told Cheddar. "In the meantime, the world is moving on. We have a very short attention span, especially on social media, and we want the short little videos. And Tiktok has just taken off."
Just this week, Facebook's parent company Meta released an update for its 3D avatar creation on Facebook and messenger. This update is encouraging users of Instagram to create their virtual selves, and it is an early step towards making the metaverse vision a reality. David Ewalt, editor-in-chief at Gizmodo joins Cheddar News to discuss.
Ed Butowsky, managing partner at Chapwood Investments, joined Wake Up With Cheddar to break down the disappointing takeaways from Spotify's Q4 earnings report, which sent the stock plunging.
Google parent company Alphabet saw yet another successful quarter reporting its final earnings report for 2021 on Tuesday. The tech giant beat Wall Street expectations across the board with much of that success owed to not only the growth of its cloud business, but also its multi-platform advertising. Joanna O'Connell, Principal Analyst at Forrester explains why advertising may be one of the keys to Alphabet’s future success.
