Apple could face a customer loyalty crisis if tariffs boost prices, says tech analyst [Yahoo! Finance]
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Source: Yahoo! Finance
“If the 145% China tariffs came into play, we believe Apple would have no choice but to start charging $2,000-plus for iPhone Pro once inventory levels came down,” Wedbush Securities analysts wrote in a note on Sunday. The tech giant has developed a loyal fan base of customers willing to pay premium prices for their products, like iPhones. Product differentiation, brand equity, and perception of value are part of the company's strategy. However, research shows that increasing prices can negatively impact customer loyalty. And adding exorbitant costs to Apple customers would be a dealbreaker for many, Dan Ives, Wedbush Securities managing director, told me. Ives put it to me this way: “If someone charged you $7 for a slice of pizza, even the best slice of pizza, you wouldn't buy it. So everything has a price.” As someone who grew up eating New York pizza, that resonated with me. It seems Apple may have some breathing room before considering raising prices for U.S. customers. The
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