Apple Price Cut Focused on China, Analyst Dan Ives Says

Apple Price Cut Focused on China, Analyst Dan Ives Says

Assessment

Interactive Video

Business, Architecture

University

Hard

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The video discusses the impact of China tariffs on Apple's financials, including a potential 4% hit to EPS and the possibility of passing costs to consumers, which could lead to a loss of iPhone sales in the US. It highlights Apple's supply chain adjustments and pricing strategies to mitigate tariff effects. The discussion also covers Apple's market share strategy, particularly in China, and the importance of the iOS install base in maintaining growth despite competitive pressures from Huawei and Samsung.

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the estimated impact on Apple's EPS if the December 15th tariff is absorbed?

6% increase

4% decrease

2% increase

8% decrease

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How did Apple respond to the tariffs on iPads and Apple Watches?

By discontinuing the products

By speeding up shipments

By slowing down shipments

By increasing prices

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the price difference between the iPhone 11 and the iPhone XR?

$200 higher

$50 lower

$100 higher

$150 lower

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might consumers still prefer the iPhone XR over the iPhone 11 despite the tariffs?

Longer battery life

Better camera features

Lower price

More color options

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is Apple's strategy to maintain its market share in China?

Reducing product variety

Doubling down on price cuts

Increasing product prices

Introducing 5G technology

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How many iOS devices are part of Apple's install base?

1.4 billion

1.6 billion

1.8 billion

1.2 billion

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the significance of Apple's install base according to the discussion?

It is a minor aspect of their strategy

It is the core of their growth thesis

It is only important for US sales

It is irrelevant to their market strategy