- signal5
- Posts
- Tariff games
Tariff games
Profit Monk
April 17, 2025
Questions 5ignal answers.
What is going on in the world of business & tech? Why that matters? How to build long term wealth using that info?
How to operate with an alpha mindset - in business and in life?
We are putting in $100K live in our portfolio based on our strategy. How is that doing?
The tariff impact (that went away)
The 256GB version iphone 16 pro costs about $1,100. According to Wayne Lam, research analyst at TechInsights (which dissects major products), the hardware components inside—the bill of materials—cost Apple roughly $550 at launch. Add assembly and testing, and Apple's cost rises to approximately $580. Even accounting for Apple's advertising expenses and included services like iMessage and iCloud, the profit margin remain reasonable.
With the tariff announcement - things change for Apple. And for you.
Why it matters
With the new announced tariff on Chinese imports, currently at 54% —> 145%. This would drive Apple's cost up to around $850 —> $1347. Without raising prices, Apple would lose money. So one of the following 2 things will happen -
No deal - iPhone pricing goes through the roof. You keep your old iphone for next 5 years. Apple stock craters. TSMC stock dives off a roof heading straight down as Apple is one of TSMC’s biggest revenue drivers. Your 401k goes down too.
Deal - None of the bad things above happen (This is where it is going)
We will publish one portfolio - for every day of the week. Mon-Fri.
The Monday post from every week will track the Monday portfolio. The Tuesday post will track the Tuesday portfolio - and so on -
Portfolio - Thursday
Current holdings - AVGO, PM, ABT
Portfolio ID | Gains - 1 Month | Gains - 1 Quarter | Gains - 1 Year | Gains - 3 Year |
|---|---|---|---|---|
Thursday | -5.7% | -15.2% | -1.9% | 40.8% |
“I adore you, sweetheart.
I know how much you like to hear that — but I don’t only write it because you like it — I write it because it makes me warm all over inside to write it to you.
It is such a terribly long time since I last wrote to you — almost two years but I know you’ll excuse me because you understand how I am, stubborn and realistic; and I thought there was no sense to writing.
But now I know my darling wife that it is right to do what I have delayed in doing, and that I have done so much in the past. I want to tell you I love you. I want to love you. I always will love you”
-Richard Feynman - in a letter to his wife - 2 years after her death
It is national pet day. Do something good for our animal friends.
Go and check out this totally unnecessary Samsung frame TV. Why not?