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higher minimum wage and higher electricity tariff will probably hit a few percentage points on the margins. Adding the latest baseline tariffs and reciprocal tariffs, how much will be the total impact to the margins?
Probably not that low. I doubt it will go to Covid low, Max Lim. While it has priced in the min wage and electricity tariffs due to the nature of "forward looking stock market", it will have to price in the reciprocal tariffs impact on the margins or revenue hit due to supply chain impact.
Covid time a lot of work at home, still got market. But now the market no good normally give only PE15……some more iPhone in US going to sell higher price and so the sales will be affected
Revenue affected is possible, but unlikely for share price to go down 1.00. Mr. Market will be really nice to offer 1.00 quotes. Inari's order came from Singapore and Singapore is subjected to 10% reciprocal tariffs. Singapore will not be able to absorb all the volume from all the suppliers of Apple affected by the reciprocal tariffs. And Apple will not be able to transfer all the costs to their customers. So, Apple's margins will be affected badly and will have to squeeze their suppliers and their suppliers will have to squeeze their OSAT. Inari's margins will be affected to certain extent. With higher wage, higher electricity tariffs and reciprocal tariffs, safe to assume min 10% impact, ideally 15 to 20% hit perhaps.
can expect apple will switch vendor who can offer more competitive pricing. inari has been benefited in the past. possible to get more order with lower pricing
Trade diversion works in the past, Gabriel. Not this round as Malaysia and neighboring countries are affected as well. Singapore has the lowest reciprocal tariffs and no plans to retaliate either. Singapore will try to negotiate.