Enterprise
Apple might increase its prices even more
By as much as 10 percent
Apple will always be a premium brand. The company derives a lot of satisfaction in keeping its prices remarkably high. Despite the polarizing scheme, Apple has found massive success, increasing sales throughout the years. The brand’s fans are, of course, more than happy to lap it all up.
However, this tenuous balance between price and demand might soon topple over. Apple finds itself at the behest of America’s volatile foreign policy. Because of tense Sino-American relations, Apple might have to increase its prices soon.
The strange relationship between America and China is no surprise to most people. The subtle feud has even found its way into the tech industry. This year, Huawei and ZTE have only experienced hostility from the American corporate world. Now, as the year winds down, Apple is the rivalry’s next victim.
This week, President Donald Trump will meet with President Xi Jinping. In this summit, Trump will increase tariff levels on Chinese goods. On the opposing side, Xi will try to dissuade the US president from the increase.
If implemented, the new tariff level will affect the prices of products made in China. Initially, Trump assured that Apple’s products will not be affected. (Apple’s manufacturing chain is in China.) However, this won’t be the case. According to the Wall Street Journal, the tariff will affect most China-made consumer products, regardless of brand. It might increase Apple’s prices by 10 percent.
With that, Trump has changed his tone. The president now says that the new prices won’t affect the brand’s demand, claiming that “people could stand that very easily.” Of course, consumer demand will ultimately depend on the consumers, not the president’s words. Despite increasing sales, Apple has reportedly been dissatisfied with demand. Only time will tell if consumers will start caring less about Apple’s fast-moving iPhones.
If Apple wants to keep its prices, they are left with only one option: moving its production elsewhere. However, this move isn’t optimal either. It will take a considerable amount of capital and labor. Regardless of Apple’s decision, the brand is caught in between a Chinese rock and an American hard place. Sadly, Apple’s fans will likely bear the brunt of this decision.
SEE ALSO: Apple iPhone XS Review: A great choice for a select few
The ongoing trade war between the United States and China is putting a lot of companies out of business in one country. While all eyes are currently on America’s crusade against TikTok, China has launched a salvo of its own. The country has started banning AMD and Intel, starting with government devices.
Recently, as reported by the Financial Times, China has introduced a new rule that bans American chipsets and servers from government agencies. The new ban includes AMD, Intel, and Microsoft Windows.
In lieu of the now-banned brands, Chinese government agencies must use approved brands from a list of 18 Chinese manufacturers. Unsurprisingly, the list includes Huawei, another brand involved in the ongoing trade war. (Huawei is still banned on American soil.)
As with bans from America, China’s latest rules stem from a desire to implement national security. Both countries allege that using brands from the opposing side will open a potential avenue for transferring classified information.
Currently, the ban against the American chipsets are only affecting government devices. However, if it follows the same trajectory as Huawei and TikTok in the United States, a government-only ban might soon lead to an all-out ban on consumer devices. As TikTok is currently hanging in the balance, it’s unlikely that the trade wars will cool down anytime soon.
So far, Apple’s greatest enemy has been the European Union. Months and months of claiming that the company engages in anti-competitive practices, the region has successfully caused Apple to drastically change a lot of things about the iPhone including the Lightning cable. Now, a new challenger wants Apple to answer for its supposed grip on the industry: the United States government.
Today, the Department of Justice is officially suing Apple for supposedly monopolizing the smartphone industry and stifling competition. The lawsuit alleges that Apple’s lineup of products prevent users from trying out other brands. For example, Apple limits how well a third-party smartwatch works on an iPhone, pushing users to go for an Apple Watch instead.
The lawsuit also includes an important pain point in Apple’s fight in Europe. It says that the company makes it difficult for iPhone users to communicate with Android users (and vice versa). Late last year, the company already committed to supporting RCS as a messaging standard, finally easing communication between the two systems. Their adoption has yet to arrive, though.
Though not as stringent as Europe, the American government is no slouch when it comes to questioning its own companies for pursuing anti-competitive practices. In the past, it went through Google and Spotify to protect the interests of its citizens. The lawsuit against Apple is no different, gathering signatures from sixteen states.
For Apple’s part, the company aims to get the case dismissed, alleging the lawsuit’s unfair scope of just the American people when it targets the entire world.
SEE ALSO: Apple opens first Developer Center in Southeast Asia
With how technology is these days, it’s no surprise that the next big thing is always just over the horizon. However, these developments often happen year after year. Today, artificial intelligence is strapping a rocket to this already fast trend. Only a few months since the launch of Gemini, Google has already launched its successor, Gemini 1.5.
Launched only recently, Gemini is a marvel in itself. Prior to the model, Google was already a force in the AI world with Bard. Gemini takes the former model and improves an already impressive service. Currently, users — both in business and for personal use — can subscribe to the service.
Today, Google has confirmed that Gemini 1.5 is official. The company is touting how much more impressive the new version is, compared to its predecessor. For one, Gemini 1.5 Pro is just as powerful as the current Gemini Ultra, beating the latter on 87 percent of tests. The new version is reportedly more efficient in allocating only the necessary resources for queries, rather than the entire model.
Despite allocating resources, Gemini 1.5 can handle a million tokens at a time. For reference, Gemini Pro can only handle 32,000 tokens at a time. Basically, the new version can parse through a humungous chunk of data all at once without batting a digital eye. (Google is claiming that capabilities for 10 million tokens is nearing, too.)
If you want to see what a million tokens in the palm of your hand feels like, Gemini 1.5 is already available for developers and business users. However, a wider rollout is still coming soon.
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