00:00If they're going to be recommitting to spending in the U.S., they're probably still going to be facing, what, at the moment, 20% tariffs on an iPhone ship from China.
00:07They're still going to be looking to move into India. The headwinds aren't stopping, but the market is still at least a bit more relieved.
00:13Absolutely. This would signal some relief. But to your point, this doesn't exactly eliminate tariffs.
00:18And as we reported before, even if Apple wanted to shift production more to places like India, the ramp up on that is going to be gradual.
00:25It doesn't happen overnight and won't necessarily happen in time for the big iPhone launch.
00:30This fall. And time and time again, Mark Gurman's been out there saying, look, maybe they have to protect margins.
00:35Maybe you look at a slight price increase. We've been thinking about how they tend to enact that, whether it's an actual more costly iPhone or whether it's more about the data and the services.
00:43But what are you hearing in terms of how they innovate in this context as well?
00:49So it does feel very safe to assume that Apple is at least considering price hikes.
00:52Every other consumer electronics company, including Microsoft recently with the Xbox, has had to weigh, if not impose tariffs.
00:58And I think you're going to see more in that space in the consumer electronics industry.
01:03Apple, for its part, if these price hikes do come to bear, they're going to be coming at a time when Apple is expected to announce a radically, radically might be a strong word,
01:12but a noticeably redesigned iPhone, more than just spec bumps, more than just software upgrades, but thinner, just something that might actually persuade people to upgrade.
01:22And it would be interesting to see how much Apple frames any sort of potential hike around, quote, technology improvements, design improvements.
01:30I don't expect them to mention tariffs in any sort of big presentation that it makes.
01:35But the real redesigns, they're coming in 2027. That's when we get curvature. That's when we get foldable, right?
01:412027, Mark Gurman has reported, is the year that you can see maybe more ambitious, bold Apple designs.
01:48And we're talking, as you say, more than just a slimmed-down iPhone.
01:51But things like a foldable phone, an entry into home robotics would be really interesting and is something that Bloomberg has reported on.
01:58But there is a really interesting and possibly unfortunate gap between the present and when Apple's finally going to be able to catch up in terms of its ability to manufacture and market these devices.
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