19 hours Ago By David Richards
Several Australian appliance and consumer electronics Companies are facing a bleak 2025 following the roll out of US Presidents Tariff policies, among them are Sunbeam, Shriro and their Everdure barbecue brand and Australian appliance manufacturer Breville appliance who generate 45% of their sales from the USA. At a consumer level the big question is whether major brands such as Lenovo, Dell, HP, Apple, Samsung, Panasonic, and Sony are set to lift prices of goods in Australia to compensate for tariff hits on goods going into the US market with all these brands manufacturing in Countries that have been hit hard with tariffs. Brands such as Breville who manufacture 90% of their products in China have also been hit by the fact that 45% of their sales come from the USA the same applies with Shriro who were recently claiming that future growth was based on sales into the US market for their Everdure product range.
Analysts have told ChannelNews that there is the real possibility that several brands could lift prices in none affected markets in “An effort to rebalance lost revenue in other markets”. “The most likely scenario is brands lifting prices globally in an effort to recoup tariff hits claim some observers. Last night shares of Dell, Apple, Sonos, HP Lenovo, plunged last night after President Donald Trump announced sweeping tariffs on imports from virtually every US trading partner.
The only PC stock not to be hit was Taiwanese brand Acer. Dell fell 18.9%, Lenovo 7.
79%, Apple 9.25%, HP 14.71% with Acer 0.
5% this was despite Taiwan being hit with a 41% tariff. Also down was Microsoft whose shares fell $2.6%.
Brands such as Apple Panasonic and Samsung who took each way bet in an effort to counter balance the impact of relying on China with investments in places such as Thailand, Malaysia, Vietnam and India are now facing new issues with several South East Asian Countries hard hit by Trumps tariffs. The reciprocal tariffs announced yesterday have hit several Companies and nations where they manufacture. Vietnam, where several Chinese brands invested along with the likes of Apple and Samsung have been hit with tariffs of 49%.
Indonesia, where Japan’s Panasonic source products along with Sharp and Sony is among Countries hit with 32% tariff. One big plus for Australians is that distributors such as Tempo who source Sharp microwaves and several other products from Indonesia and China are able to control the pricing of goods that they bring into the Australian market without the risk of International price rises, with the real possibility that house brand products could surge in demand as pricing of products are controlled by local distributors. Frederic Neumann, chief Asia economist at HSBC Holdings claims, “Goods are transnational, they cross borders multiple times, so to target a country cleanly with tariffs is almost impossible,.
” Breville CEO Jim Clayton “You’ll have collateral damage, you’ll hit other producers globally.” Andrei Quinn-Barabanov, supply chain industry practice lead at Moody’s Analytic claimed “Given how integrated supply chains are, companies are likely to face many tariffs throughout their purchasing and production process”. “One question that looms are how much of a surprise are companies is in for in terms of hidden costs that will be inflated by tariffs,” he said.
“There will be a chain reaction of all those additional costs that come into supply chains.” The global nature of the tariff rollout has undercut efforts by companies like Dell, Microsoft Apple and Samsung to shift production away from China ahead of new tariffs, now those Companies are having to rethink their go to market strategies along with Chinese Companies who also shifted production out of China ahead of Trumps appointment as President of the USA. As China’s share of US imports declined, its share of the world’s total exports has been increasing steadily since 2017.
Their share of global manufacturing rose to about one-third. More than half of Cambodia’s factories, for example, are now Chinese owned along with a large proportion in Vietnam where the Peoples Republic Of China have invested in roads and port facilities to support Chinese manufacturing in Vietnam. If brands choose to raise prices globally in an effort to rebalance revenues iPhones could be among the hardest hit, analysts said on Thursday, with increases of 30% to 40% in the USA and possibly 20% rises in markets such as Australia and the UK.
Apple sells more than 220 million iPhones a year; its biggest markets include the United States, China and Europe will all these markets impacted by tariff wars. The cheapest iPhone 16 model was launched in the US with a sticker price of US$799, could cost as much as $1,142, per calculations based on projections from analysts at Rosenblatt Securities, who say the cost could rise by 43% – if Apple is able to pass that on to consumers. They claim that it would be logical to spread prices out around the world even in markets not impacted by the tariff rise.
“This whole China tariff thing is playing out right now completely contrary to our expectation that American icon Apple would be kid-gloved, like last time,” Barton Crockett, analyst at Rosenblatt Securities, said in a note. Several Australian appliance and consumer electronics Companies are facing a bleak 2025 following the roll out of US Presidents Tariff policies, among them are Sunbeam, Shriro and their Everdure barbecue brand and Australian appliance manufacturer Breville appliance who generate 45% of their sales from the USA. At a consumer level the big question is whether major brands such as Lenovo, Dell, HP, Apple, Samsung, Panasonic, and Sony are set to lift prices of goods in Australia to compensate for tariff hits on goods going into the US market with all these brands manufacturing in Countries that have been hit hard with tariffs.
Brands such as Breville who manufacture 90% of their products in China have also been hit by the fact that 45% of their sales come from the USA the same applies with Shriro who were recently claiming that future growth was based on sales into the US market for their Everdure product range. Analysts have told ChannelNews that there is the real possibility that several brands could lift prices in none affected markets in “An effort to rebalance lost revenue in other markets”. “The most likely scenario is brands lifting prices globally in an effort to recoup tariff hits claim some observers.
Last night shares of Dell, Apple, Sonos, HP Lenovo, plunged last night after President Donald Trump announced sweeping tariffs on imports from virtually every US trading partner. The only PC stock not to be hit was Taiwanese brand Acer. Dell fell 18.
9%, Lenovo 7.79%, Apple 9.25%, HP 14.
71% with Acer 0.5% this was despite Taiwan being hit with a 41% tariff. Also down was Microsoft whose shares fell $2.
6%. Brands such as Apple Panasonic and Samsung who took each way bet in an effort to counter balance the impact of relying on China with investments in places such as Thailand, Malaysia, Vietnam and India are now facing new issues with several South East Asian Countries hard hit by Trumps tariffs. The reciprocal tariffs announced yesterday have hit several Companies and nations where they manufacture.
Vietnam, where several Chinese brands invested along with the likes of Apple and Samsung have been hit with tariffs of 49%. Indonesia, where Japan’s Panasonic source products along with Sharp and Sony is among Countries hit with 32% tariff. One big plus for Australians is that distributors such as Tempo who source Sharp microwaves and several other products from Indonesia and China are able to control the pricing of goods that they bring into the Australian market without the risk of International price rises, with the real possibility that house brand products could surge in demand as pricing of products are controlled by local distributors.
Frederic Neumann, chief Asia economist at HSBC Holdings claims, “Goods are transnational, they cross borders multiple times, so to target a country cleanly with tariffs is almost impossible,.” “You’ll have collateral damage, you’ll hit other producers globally.” Andrei Quinn-Barabanov, supply chain industry practice lead at Moody’s Analytic claimed “Given how integrated supply chains are, companies are likely to face many tariffs throughout their purchasing and production process”.
“One question that looms are how much of a surprise are companies is in for in terms of hidden costs that will be inflated by tariffs,” he said. “There will be a chain reaction of all those additional costs that come into supply chains.” The global nature of the tariff rollout has undercut efforts by companies like Dell, Microsoft Apple and Samsung to shift production away from China ahead of new tariffs, now those Companies are having to rethink their go to market strategies along with Chinese Companies who also shifted production out of China ahead of Trumps appointment as President of the USA.
As China’s share of US imports declined, its share of the world’s total exports has been increasing steadily since 2017. Their share of global manufacturing rose to about one-third. More than half of Cambodia’s factories, for example, are now Chinese owned along with a large proportion in Vietnam where the Peoples Republic Of China have invested in roads and port facilities to support Chinese manufacturing in Vietnam.
If brands choose to raise prices globally in an effort to rebalance revenues iPhones could be among the hardest hit, analysts said on Thursday, with increases of 30% to 40% in the USA and possibly 20% rises in markets such as Australia and the UK. Apple sells more than 220 million iPhones a year; its biggest markets include the United States, China and Europe will all these markets impacted by tariff wars. The cheapest iPhone 16 model was launched in the US with a sticker price of US$799, could cost as much as $1,142, per calculations based on projections from analysts at Rosenblatt Securities, who say the cost could rise by 43% – if Apple is able to pass that on to consumers.
They claim that it would be logical to spread prices out around the world even in markets not impacted by the tariff rise. “This whole China tariff thing is playing out right now completely contrary to our expectation that American icon Apple would be kid-gloved, like last time,” Barton Crockett, analyst at Rosenblatt Securities, said in a note. Apple did not immediately respond to a request for comment.
The other issue for Apple was that even before tariff hits sales of the Companies products have been floundering as they struggled to implement their artificial intelligence offering. Expert reviews have suggested that the features currently being offered by Apple, do not provide enough of a compelling reason to justify upgrading to newer models. The stagnation in demand could put additional pressure on Apple’s bottom line, especially if costs rise due to tariffs.
Angelo Zino, equity analyst at CFRA Research, said the company will have a tough time passing on more than 5% to 10% of the cost to consumers. “We expect Apple to hold off on any major increases on phones until this fall when its iPhone 17 is set to launch, as it is typically how it handles planned price hikes.” Apple did not immediately respond to a request for comment.
The other issue for Apple was that even before tariff hits sales of the Companies products have been floundering as they struggled to implement their artificial intelligence offering. Expert reviews have suggested that the features currently being offered by Apple, do not provide enough of a compelling reason to justify upgrading to newer models. The stagnation in demand could put additional pressure on Apple’s bottom line, especially if costs rise due to tariffs.
Angelo Zino, equity analyst at CFRA Research, said the company will have a tough time passing on more than 5% to 10% of the cost to consumers. “We expect Apple to hold off on any major increases on phones until this fall when its iPhone 17 is set to launch, as it is typically how it handles planned price hikes.”.
