iPhone prices will increase by a substantial amount in the not too distant future, of course Tim Cook, the president Apple Lossless Audio CODEC (ALAC),, following a visit to France yesterday. Tim Cook's statement comes after he probably did not convince the French president, Emmanuel Macron, to accept Apple's tax tricks and implicitly the payment of much lower taxes for the receipts and profit generated in Europe.
The president of Apple confirmed the fact that his company will at some point pay taxes in the European countries where it actually sells the products, not in Ireland, where it benefits from an extremely low tax. Apple has already been fined by the European Union because of this tax agreement, and Tim Cook confirms the fact that his company will pay taxes in the European countries where it sells its products and not in Ireland, at a low value.
iPhone prices in Europe are going to increase substantially if Apple pays taxes in every country where it sells its products, and here we are not talking about 10-20 euros, as before. If Apple will be forced to pay taxes in every country where it sells its products, then iPhone prices could increase by at least 100 euros in some of them, if not even more, and the customers will bear it.
iPhone prices are too high in many countries anyway, and Apple will not absorb an increase in the taxes applied for receipts, because it would lose many billions of dollars. If Apple would accept these taxes, it would return its profit to the normal level for a smartphone manufacturer, but everything depends on the aggressiveness with which the great European powers will force Apple to comply with European tax legislation.
Macron’s office said the two didn’t discuss past tax disputes, but Cook accepted that fiscal laws worldwide are shifting toward making companies pay tax where money is actually earned.
