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The very high price of the iPhone X is cited as the main reason why sales have largely fallen after the December quarter. Yes, Apple has sold a lot of iPhone X units in the following quarters, but not as much as it would have hoped.
This year's iPhone X versions are supposed to be more affordable, according to almost all the leaks we've seen. Some say the cheapest new iPhone could cost $ 599 to $ 799, the latter being the most likely price. The direct successor of the iPhone X last year, would cost $ 899, while the Plus version will cost $ 999.
But Donald Trump's "good and easy to win" trade war with China has arrived.
with China is just one of the many trade wars that Trump has started, but it is probably the most important, and could have devastating effects on everyone, including Apple.
A new report from The Wall Street Journal explains that Apple could end up in a situation where the iPhone could be taxed both in the United States and in China at the following the American-Chinese trade war. Who will end up eating the price increases? Not Apple, that's for sure.
This is not the first report that details Apple's concerns with these trade agreements, and even though Trump promised that the iPhone would not be included in the list of products to receive an import tariff, could change in the future.
Smartphones were not included in July 6 tariffs on Chinese products of $ 34 billion, or on the $ 16 billion forecast for August. They are not included in the third round of $ 200 billion either, but Trump now threatens tariffs on a total of $ 500 billion in imports, which would be "about all that China ship to the United States. "
the iPhone could be a likely victim, given that Apple accounts for 9% of the Chinese mobile market.
The United States last year imported $ 45 billion worth of mobile phones from China, notes the report, not all iPhones. But Apple would be harder hit than other device makers because most iPhones are mbad-produced in China.
In the worst case, the iPhone could be taxed in both America and China, the most important markets of Apple.
The report notes that a 10% tariff on an iPhone X would add $ 37 to the $ 368 import cost, according to IHS Markit. On the other hand, hitting Apple with additional rates could hurt both governments, not just Apple, because consumers would not be happy with the additional costs. . In addition, the Chinese government should think twice before taking action against Apple, which has brought millions of jobs to China, including some 10,000 employees working for Apple and more than three million people in the chain d & # 39; supply.
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