Technology Versus Tariffs: A Tech CEO’s Evaluation

By Janice A. Mahlmann, CEO and Founder of August eTech

The technology market may become a casualty in the recent trade war with China.

Due to the recent US tariffs against Chinese goods and the currency devaluation from China in response, large companies (like Microsoft and Apple), small businesses, and consumers for technology will all be affected by this confrontation of policy.

 

What does this mean? Keep an eye on costs!

 

The Chinese Yuan devaluation should allow the costs of goods to stay somewhat low, but this is not set in stone. The value of goods may change at the whim of the Chinese government or if the US tries to counter Yuan devaluation with policy changes of their own.

 

Potential cost changes not only affects equipment such as laptops, cell phones, and servers, but Cloud service costs as well. Cloud companies might have to raise prices for their services in accordance with a raise in their own equipment costs.

 

My recommendation: Consider purchasing on-premise equipment now (while costs for this equipment is still low) or locking in rates for cloud services where you can.

 

This will be a bumpy ride, but with proper planning your business should be able to manage it.

 

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