Apple is taking all the advantage it can, from the ban on Huawei. According to the online sources, there is a modest increase in iPhone production along with shipments. Apple will assemble and ship 40 million units of iPhones by the end of June. Previous predictions suggest that Apple will build 39 million iPhone units by the end of the second quarter.
Apple is getting all the attention and advantages after Trump administration made the rule to ban the technological components and gadgets that originate from Chinese companies. Huawei became a collateral victim of the recent decision to ban the Chinese goods and services after the conclusion of a long-term feud between China and the U.S.
The recent predictions suggest that Apple has increased the production of iPhone XR, iPhone XS and iPhone XS Max up to 75%, which is around 30 million units. The remaining 9-10 million iPhone units are divided among iPhone 7 and 8 series.
The increase in the number of iPhone units would help the Cupertino tech giant to help regain the market share with its iPhone. During Q4 2018, Apple saw lower demand for the iPhones irrespective of the models and price tags.
Will Apple regain its market share in 2019?
It is impossible to predict how the sales of the iPhone in the next quarters are going to be. In 2018, Apple said that it would not reveal or announce the sale of the iPhones every quarter. After the ban of Huawei in the American market, it is expected that the proposed 25% of the tariff will have a crucial impact on the bottom line of the iPhones.
Apple is refusing to avail the added costs to the consumers as it would ultimately decrease the demand of the iPhones. In the long run, Apple will receive a fatal hit on its EPS as the consequence of Trump’s new rule. For a long time now, Apple has been pursuing the Trump administration for reconsidering the already proposed tariff.
The effect of US tariffs on iPhone
Analysts suggest that there will be continual risks concerning Apple’s growth for a short period. The potential tariffs of the U.S. predict a massive impact on the sales of the iPhones. The U.S. tariff will also affect the hardware of the iPhones that are manufactured in China.
The U.S. tariffs would also have a direct impact on the competitiveness of Apple across the globe. The Chinese producers often compete within the global markets, and their products don’t see the light of the day across the U.S. market. These producers are not going to be impacted by the potential U.S. tariffs.
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