The September iPhone event is right around the corner. Soon after the September event ends, the pre-order of the next-gen iPhones will begin. Amid the anticipation of the iPhone that is destined to shock and perplex iOS users, there is a shocking revelation.
JP Morgan has recently revealed that the Cupertino tech giant did manage to decline the cost of building the iPhone 11. Compared to its predecessor iPhone XS, the iPhone 11 has a production cut of around 10-12%. The decline in production cut will help Apple to sustain amid the ongoing trade war between China and the United States.
Apple will take a lot of money from customers for iPhone 11
The revelation suggests that the iPhone 11’s billing materials now cost around $30 to $50. By the looks of it, the price of the iPhone 11 should be considerably low. The present-day manufacturing price of Apple iPhone XS Max is $433. Apple is charging almost twice the money for its smartphone.
To reduce the manufacturing cost of the device, Apple decided not to add a prominent feature of iPhone XS, the 3D Touch. If a company manages to reduce the manufacturing cost of a device, then there is usually a high chance that the device’s price will get a significant cut as well. However, due to political reasons, this is not going to happen with the forthcoming iPhone 11.
Since the inception of the trade war between America and China, Apple has been moving heaven and earth to keep the iPhone’s production cost down. The Cupertino tech giant has been working on different ways to reduce the additional charges for protecting its revenue.
Apple is the only company that will sustain the trade war
Analysts suggest that each iPhone has a reduced production cost of $30 to $50. After the September event, Apple could easily absorb the large proportion of tariffs and the sale on the US market will not deteriorate as well.
The decline in the internal memory price is everything that Apple had wanted for compensating with a large proportion of tariffs. If Apple chooses to keep the price tags of the 2019 edition of iPhone 11 the same as the iPhone XS Max 2018, the company will still profit.
China’s new decision on global tariff has cost Apple’s share price to crumble by 5%. Nevertheless, the tariff decision by China will not affect the revenue of the company.