Tariffs on computer components from China to the US might seem to apply equally across the board. But embedded systems might be setup to take these sanctions particularly hard, passing on considerable costs to end users.
The Croesus-like revenue typically seen in Apple’s quarterly earnings can be a little blinding at times. When your revenue is regularly above $40 billion every three months, it’s easy to see single digit fluctuations as rounding errors. But in the end, these large overall numbers can often hide local fluctuations that would otherwise change the narrative around the Cupertino giant. Ben Thompson sees just such a problem in the company’s China strategy.