Hardware companies often operate on a relatively thin margin, especially as compared to say, software companies.

Let's say a companies margin was 40%. The cost of their constituent parts doubles due to tariffs, they are no longer making money as a result.

I hope this helps explain it for you.

It's more complicated than that.

For example, the company can raise its prices. How well that works depends on whether there is competition for the company's product. If the competition is also hit by the tariffs, then they're on an even playing field. If the competition is using native parts, then the competitor gets the business.