Needing to pass on the price is quiet worrysome. It might affect sales. Economics is really not that hard to understand once you get into the basic fundamentals.
Yeah, but computers and smartphones are kind of like food - people need them, they are not luxury goods. You might be able to use your old laptop a while longer or keep using your broken smartphone, but if it really breaks, you will buy another one regardless of tarrifs.
I know a lot of people who have moved away from smartphones to basic feature phones because of the expense and annoyance, as well as the relentless intrusive surveillance.
Lenovo laptops are no essential goods. But if everyone holds on to their laptop for 5 years instead of 4 years, that would hit their yearly sales by 20%. If that’s a lot depends on their margins.
Since you mentioned foods: Tarrifs will also impact food sales. People will prioritize cheaper foods. Avoid softdrinks, icecream and other non-essentials. They might also eat less meat and labor intensive fruits like grapes.
Nobody has infinite money. Everyone is affected differently by tarrifs. But everyone is affected by it and will change their consumption in some way, may it be the essentials or luxury goods. Lenovo will also be affected.
Needing to pass on the price is quiet worrysome. It might affect sales. Economics is really not that hard to understand once you get into the basic fundamentals.
Economics is much harder to understand when you realize how little the basic fundamentals actually tell you.
Yeah, but computers and smartphones are kind of like food - people need them, they are not luxury goods. You might be able to use your old laptop a while longer or keep using your broken smartphone, but if it really breaks, you will buy another one regardless of tarrifs.
I know a lot of people who have moved away from smartphones to basic feature phones because of the expense and annoyance, as well as the relentless intrusive surveillance.
Lenovo laptops are no essential goods. But if everyone holds on to their laptop for 5 years instead of 4 years, that would hit their yearly sales by 20%. If that’s a lot depends on their margins.
Since you mentioned foods: Tarrifs will also impact food sales. People will prioritize cheaper foods. Avoid softdrinks, icecream and other non-essentials. They might also eat less meat and labor intensive fruits like grapes.
Nobody has infinite money. Everyone is affected differently by tarrifs. But everyone is affected by it and will change their consumption in some way, may it be the essentials or luxury goods. Lenovo will also be affected.