A new tariff of products imported from China might seriously affect iPhone sales by cutting them from 6 to 8 million in the United States, said technology analyst Dan Ives.
President Donald Trump on Thursday threatened a 10% tariff on the remaining 300 billion products that are currently not subject to tariff. These products include smartphones, laptops, tablets and other tech items. This tariff will likely hit the US tech industry and Apple may become its first target. Apple already took a hit when it’s shares fell 2% on Thursday and another 1% on Friday.
This trade war will significantly increase iPhone prices. Apple may choose to shift some of its supply chain to India and Vietnam but cannot abandon China. The resulted price increase will affect iPhone sales by up to 4% in 2020 if this trade war continues. Users will pay more for iPhones which’ll delay sales or the consumers will look for another smartphone which is even dangerous for the company.
The time is crucial for Apple as the Cupertino based tech giant reported increased sales in China by cutting prices. The situation is clearly bad for Apple and can become worse if this trade war between DC and Beijing heats up.