No matter what President Trump keeps insisting, his upcoming tariffs on all Apple products will be paid for either by the company or by Americans who buy iPhones, iPads and Macs.
A market-analysis firm warns that If Apple chooses to pass the cost of these import taxes onto its customers, sales of iPhone could drop 20%.
The iPhone is about to be caught in President Trump’s trade war with China. A month from today, the US will begin charging a 10% tax to import iPhone, iPad, and other devices. They are part of $300 billion dollars worth of imports getting new tariffs.
Trump’s decision caused a 2.0% drop in Apple’s share price.
The drop in iPhone sales among Chinese consumers that hurt Apple so much last year is now a thing of the past, according to market analysts. The company saw five straight months of growth in that important region.
Rising trade tensions have brought calls in China to boycott Apple devices in favor of Huawei handsets, but the iPhone has an unlikely cheerleader: the CEO of Huawei admits he buys iPhones for his family.
“One can’t narrowly think love for Huawei should mean loving Huawei phones,” said CEO and founder Ren Zhengfei.
A pair of GOP congresspeople have strongly criticized the decision to remove songs from artists critical of the Chinese Communist Party from Apple’s streaming music service in that country.
The move highlights the compromises the iPhone maker has to make in order to offer its products in a very lucrative market.
The latest round of iPhone price cuts on China have accomplished their goal, according to an analyst with Wedbush. Demand for Apple handsets has increased in that country.
That’s very good news for the company, as CEO TIm Cook said early this year that slow sales in China were the entire reason Apple saw a revenue decease at the end of 2018.
Temporary price cuts in China offered only a temporary boost in iPhone sales, according to industry analysts watching how Apple would follow up dismal year-end figures in the depressed Chinese smartphone market.
To start 2019, Apple revealed unexpected revenue shortfalls, blaming it mostly on a sharp drop in demand for iPhones in China.
Ming-Chi Kuo, a tech analyst with a decent record for accuracy, predicts Apple will sell more iPhones in 2019 than many other analysts are anticipating.
To be clear, Kuo isn’t predicting a banner year for iPhone sales. Just not a terrible one.
The Chinese phone market cratered in the final quarter of 2018, but iPhone sales in the country did even worse.
This poor showing is primarily a result of the high prices Apple charges for its handsets, according to an industry analyst.
Sales of iPhones seem to be weaker than in previous years, and the Chairman of the Federal Reserve has an explanation: a drop in consumer spending in China.
The implication is that the slowdown in iPhone sales isn’t a result of anything Apple has done.
