Apple says proposed U.S. tariffs may hit Watch, does not name iPhone

Updated: Sat, Sep 08, 2018
02:36 am
Reuters
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A "wide range" of Apple Inc products including its Watch likely would be hit by proposed U.S. tariffs, the company told U.S. trade officials, but it did not name the iPhone as among the products affected.

AirPods headphones, some of Apple`s Beats headphones, and its new HomePod smart speaker also face levies as part of proposed 10 percent tariffs on $200 billion worth of Chinese goods, according to an unsigned letter the company submitted on Wednesday to U.S. officials as part of a public comment period.

"Our concern with these tariffs is that the U.S. will be hardest hit, and that will result in lower U.S. growth and competitiveness and higher prices for U.S. consumers," Apple said in the letter.

Apple has not responded to requests for comment.

The letter did not mention the iPhone, which accounted for about two-thirds of its $229 billion in revenue in its most recent fiscal year. Reuters had reported that the Apple Watch was likely to be affected by the tariffs.

Shares of the iPhone maker slipped 1 percent in extended trading.

Apple also said that computer parts for its U.S. operations would be hit by the tariffs. The company said that "main logic boards with microprocessing units" could face levies, along with equipment used for research and development.

On Apple`s most recent earnings call in July, Chief Executive Tim Cook said the company could face such tariffs "related to data centres."

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)