1
00:00:07,133 --> 00:00:10,453
Speaker 1: You're listening to the Saturday Morning with Jack team podcast

2
00:00:10,573 --> 00:00:13,093
Speaker 1: from News Talks at b Well.

3
00:00:13,093 --> 00:00:17,093
Speaker 2: The fallout from Donald Trump's tariffs across the world continues

4
00:00:18,493 --> 00:00:21,373
Speaker 2: to escalate. The Chinese over night announcing that they would

5
00:00:21,693 --> 00:00:25,733
Speaker 2: introduce retaliatory tariffs. I think New Zealand's tariffs kickoff at

6
00:00:25,773 --> 00:00:28,613
Speaker 2: about midnight tonight. But our textbit Paul Steinehouse is here

7
00:00:28,613 --> 00:00:31,893
Speaker 2: with the details on a couple of the big companies

8
00:00:31,973 --> 00:00:35,053
Speaker 2: already feeling the effects of Donald Trump's new policy. And

9
00:00:35,173 --> 00:00:38,133
Speaker 2: Paul Apple is going to take a beating.

10
00:00:38,813 --> 00:00:42,013
Speaker 3: Yeah, going to and already has two Jack. I was

11
00:00:42,053 --> 00:00:46,933
Speaker 3: just looking at the numbers just today, closed down seven

12
00:00:47,013 --> 00:00:50,893
Speaker 3: point three percent the last five days. It's down thirteen

13
00:00:50,973 --> 00:00:54,693
Speaker 3: percent on the past six months. It's almost down seventeen percent.

14
00:00:55,333 --> 00:00:58,733
Speaker 3: It's pretty but here's the one thing I did notice though,

15
00:00:59,293 --> 00:01:01,013
Speaker 3: if you go back to look it over the past year,

16
00:01:01,053 --> 00:01:03,933
Speaker 3: it's still up eleven percent. So I mean it is

17
00:01:03,973 --> 00:01:06,333
Speaker 3: a correction, I guess though I'm not a financial person,

18
00:01:06,453 --> 00:01:09,773
Speaker 3: and really, but you know, we're not down, down, down yet,

19
00:01:10,333 --> 00:01:11,013
Speaker 3: We're still down.

20
00:01:11,093 --> 00:01:13,613
Speaker 2: Airport is still the market cap of Rapple is still

21
00:01:13,653 --> 00:01:14,333
Speaker 2: pretty impressive.

22
00:01:14,413 --> 00:01:17,333
Speaker 3: Yeah, like two point nine trillion dollars, So it's ridiculous, right,

23
00:01:17,493 --> 00:01:20,453
Speaker 3: But I mean this is where like Apple's just taken

24
00:01:20,493 --> 00:01:22,973
Speaker 3: the real beating because I mean the first time around,

25
00:01:22,973 --> 00:01:25,013
Speaker 3: when Donald Trump was an office, they started to move

26
00:01:25,413 --> 00:01:28,573
Speaker 3: some of their production to Vietnam. Vietnam's tariffs are at

27
00:01:28,573 --> 00:01:32,053
Speaker 3: forty six percent, chins are at fifty four percent, so

28
00:01:32,093 --> 00:01:35,453
Speaker 3: they just can't win there. But it's like you for

29
00:01:35,493 --> 00:01:38,293
Speaker 3: the consumers in the US, I mean, the only good

30
00:01:38,293 --> 00:01:40,773
Speaker 3: news is that some of these companies have seen this coming.

31
00:01:41,493 --> 00:01:43,813
Speaker 3: They've pulled as much inventory into the United States as

32
00:01:43,813 --> 00:01:46,653
Speaker 3: they possibly can. And of course the tariffs don't apply

33
00:01:47,333 --> 00:01:50,173
Speaker 3: until the product crosses the border, right.

34
00:01:50,053 --> 00:01:51,693
Speaker 1: So it's already in the country. You're good.

35
00:01:52,413 --> 00:01:55,893
Speaker 3: But obviously that inventory will run out. And what we're

36
00:01:55,933 --> 00:01:57,893
Speaker 3: really looking to see with Apple, and this is why

37
00:01:57,893 --> 00:02:02,493
Speaker 3: there's just so much uncertainty with investors, is how much

38
00:02:02,533 --> 00:02:05,333
Speaker 3: of this will be passed on to the consumer. Donald Trump,

39
00:02:05,373 --> 00:02:07,173
Speaker 3: I think, actually came and see you know, he's been

40
00:02:07,493 --> 00:02:10,053
Speaker 3: talking to the big tech companies and he's they've reassured

41
00:02:10,093 --> 00:02:11,613
Speaker 3: them they're not going to pass it on. Well, I mean,

42
00:02:11,613 --> 00:02:14,653
Speaker 3: that still doesn't really help with the stock price, because

43
00:02:15,453 --> 00:02:18,773
Speaker 3: if they do increase the prices and put that onto consumers.

44
00:02:19,813 --> 00:02:22,453
Speaker 3: Apple's going to feel that because the assumption will be

45
00:02:22,493 --> 00:02:24,733
Speaker 3: that revenue will decrease, right because people are probably going

46
00:02:24,813 --> 00:02:28,253
Speaker 3: to hold onto their devices for longer. They're just not

47
00:02:28,333 --> 00:02:31,053
Speaker 3: going to have maybe as much discretionary spending. But they're

48
00:02:31,093 --> 00:02:34,493
Speaker 3: also hammered that if they take this on with, you know,

49
00:02:34,533 --> 00:02:36,693
Speaker 3: to take it out of their profit margin two or

50
00:02:36,693 --> 00:02:39,213
Speaker 3: their profits then get crushed. They don't have as much

51
00:02:39,213 --> 00:02:43,253
Speaker 3: capital to invest. Potentially, it's they don't really win at all,

52
00:02:43,253 --> 00:02:47,053
Speaker 3: and there's just this uncertainty. And it's the uncertainty too.

53
00:02:47,093 --> 00:02:48,533
Speaker 3: I don't know if you saw the this week, but

54
00:02:48,893 --> 00:02:52,013
Speaker 3: Nintendo Jack are putting out a brand new switch, the

55
00:02:52,093 --> 00:02:55,053
Speaker 3: Switch too, but now they don't know what they're going

56
00:02:55,133 --> 00:02:58,413
Speaker 3: to do. They've halted their pre orders on this new

57
00:02:58,453 --> 00:03:01,613
Speaker 3: console that was supposed to start in the US April

58
00:03:01,733 --> 00:03:05,173
Speaker 3: nine because they said, and this is the direct quote,

59
00:03:05,173 --> 00:03:07,893
Speaker 3: the company says they are taking the step in order

60
00:03:07,933 --> 00:03:11,813
Speaker 3: to assess the potential impact of tariffs and evolving market conditions.

61
00:03:12,013 --> 00:03:13,613
Speaker 3: So they don't even want to sell the thing.

62
00:03:14,493 --> 00:03:18,613
Speaker 2: That's amazing. So presumably they've already sold some, right, and

63
00:03:18,693 --> 00:03:21,013
Speaker 2: now because of the tariffs, they might have to increase

64
00:03:21,053 --> 00:03:21,453
Speaker 2: the price.

65
00:03:21,933 --> 00:03:23,893
Speaker 3: They may have to increase the price, which means there

66
00:03:23,893 --> 00:03:26,653
Speaker 3: only oh yeah, and stopping the pre orders in the

67
00:03:26,773 --> 00:03:29,093
Speaker 3: United States, And they're only announced the new switch like

68
00:03:29,173 --> 00:03:31,453
Speaker 3: a couple of days ago, and before they could even

69
00:03:31,453 --> 00:03:33,573
Speaker 3: start the pre order they said, actually, in the US,

70
00:03:33,613 --> 00:03:35,733
Speaker 3: we're going to hold that. So they're saying that the

71
00:03:35,773 --> 00:03:39,693
Speaker 3: console is still going to be for sale and be

72
00:03:39,813 --> 00:03:42,973
Speaker 3: released generally on June fifth, with the data unchanged and

73
00:03:43,013 --> 00:03:45,533
Speaker 3: the price unchanged. But I guess all of that is

74
00:03:45,773 --> 00:03:49,213
Speaker 3: you have to admit, or have to expect, is subject

75
00:03:49,253 --> 00:03:49,773
Speaker 3: to change.

76
00:03:49,893 --> 00:03:51,933
Speaker 2: Yeah, and just on that.

77
00:03:51,973 --> 00:03:54,013
Speaker 3: The switch is probably something that's been talked about in

78
00:03:54,053 --> 00:03:58,373
Speaker 3: people's households if they have young people. It's been hugely popular.

79
00:03:58,413 --> 00:04:00,133
Speaker 3: That's sold like one hundred and fifty million of the

80
00:04:00,133 --> 00:04:03,613
Speaker 3: first switch Jack. Yeah, but the reviews about the switch

81
00:04:03,653 --> 00:04:06,693
Speaker 3: to are awesome. It's faster, awesome, it's a bit bigger,

82
00:04:06,693 --> 00:04:08,573
Speaker 3: the screens a bit bigger, but not so awesome. The

83
00:04:08,613 --> 00:04:12,173
Speaker 3: price is going up yeah, and even more yeah, yeah, yeah,

84
00:04:12,253 --> 00:04:13,653
Speaker 3: maybe even more so. I think it's going to be

85
00:04:13,693 --> 00:04:16,373
Speaker 3: in New Zealand if it's on Christmas wish lists, like

86
00:04:16,493 --> 00:04:20,373
Speaker 3: eight hundred dollars. Oh yeah, I know, but there's some

87
00:04:20,413 --> 00:04:22,733
Speaker 3: new Mario Kart games and you're play it now. It's

88
00:04:22,813 --> 00:04:24,253
Speaker 3: up to twenty four people, so it's kind of like

89
00:04:24,333 --> 00:04:28,253
Speaker 3: so was lost. But there's a real uncertainty around just everything.

90
00:04:28,253 --> 00:04:30,053
Speaker 3: And I even heard, you know, this is me geeking

91
00:04:30,053 --> 00:04:33,373
Speaker 3: out today. I listened into the Finch Hears Q and

92
00:04:33,413 --> 00:04:36,093
Speaker 3: A he was doing with reporters, and all the questions

93
00:04:36,133 --> 00:04:39,893
Speaker 3: were just about uncertainty, uncertainty, uncertainty, uncertainty, what if people

94
00:04:39,973 --> 00:04:40,973
Speaker 3: do with uncertainty?

95
00:04:41,333 --> 00:04:44,373
Speaker 2: Yeah, fascinating times. Thanks Paul. At least we've got new

96
00:04:44,373 --> 00:04:47,733
Speaker 2: Mario Kart games. Paul Stenhouse our text for there Before.

97
00:04:48,133 --> 00:04:51,253
Speaker 1: For more from Saturday Morning with Jack Tame, listen live

98
00:04:51,333 --> 00:04:54,173
Speaker 1: to news talks that'd be from nine am Saturday, or

99
00:04:54,213 --> 00:04:56,133
Speaker 1: follow the podcast on iHeartRadio