Our website is made possible by displaying non-intrusive online advertisements to our visitors.
Please consider supporting us by disabling or pausing your ad blocker.
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.
ermm, definition of semiconductor can be misleading. Well, unless US customs publishes the specific HS code exempted from the reciprocal tariffs. Until then, market will price it accordingly.
tax tariff for certain semicon product. & now US still haven't fully clarify tax tariff for semicon products. These are the risks for investing tech stock now.
thats right, super B. Well, wafer level or advanced packaging like SiC/GaN will most likely be in the list of exemption. non advanced packaging which typically being used for consumer electronics probably will not be in the exemption list. Still subjective at this moment without visibility of the HS code.
brent oil? ermm... there are some mixed messages from the commodities movement. but in general, brent or wti typically represent demand which in turn driven by economic performance. seems to be pricing for slower demand in anticipation of recession. stocks dropping and gold which is a safe haven in general is dropping too instead of going up. this is probably driven by fear and flight to safety - holding cash. too much uncertainties if you will :)