Donald Trump's tariffs are devastating the tech industry, but some are more affected than others

The tariffs imposed by the Donald Trump administration are causing serious complications for tech giants like Apple and Sony, with damages that could be reflected in the prices of iconic products like the iPhone and the PlayStation 5. It has been pointed out that the price of the iPhone could reach record figures, going up to 2300 euros, which worries both the company and its consumers.

Apple is one of the biggest affected by tariffs

Apple is at a crossroads, considering renegotiating with its suppliers to reduce production costs, or absorbing some of those additional expenses to avoid a significant increase in the price of the iPhone. The company is pressured by its profit margin of 45%, which leads it to fear that a drastic price increase could negatively affect its sales and the loyalty of its followers.

On the other hand, Sony has taken a proactive approach to these tariffs. The company has accumulated a considerable amount of PlayStation 5 consoles, anticipating the current difficulties. Furthermore, it has no new console model on the horizon, which allows for greater flexibility in its short-term strategy. Meanwhile, there are rumors that Sony may relocate its console production from China to Japan, which would reduce the tariff impact from 54% to 24%. This change would help mitigate the price increase in the U.S. market.

The arrival of the new Nintendo Switch 2 could mark a turning point, and Sony is in a favorable position to compete. The uncertainty surrounding how the U.S. market will receive Nintendo’s new console could open up significant opportunities for it to expand its market share during this critical period.

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