Apple To Lose 8mn iPhone Sales If Trump’s Tariff Goes Into Effect – Market News Updates
Market News Updates

Apple To Lose 8mn iPhone Sales If Trump’s Tariff Goes Into Effect

Apple could end up in a massive loss if the trump government decides to follow its recent tariff threats. As reported by Dan Ives, an analyst in Wedbush Securities, this move could slow down the sales of iPhones by almost 8 million in the next financial year. Eventually this could result in a fall of the apple earnings by 4%.

The Trump administration threatened to impose a 10% tariff plan on the rest of the $300 billion Chinese goods that is not currently under this system. These goods, primarily consisting of smartphones, laptops and other technological goods, are set to hit the U.S. market hard.

This returned a cloud of threat over Cupertino according to Ives. He also referred to these threats as a massive punch for Apple. It was very evident that Apple is the one affected in this war between Beijing and DC. Apple was referred to as the poster war in this trade war between the two nations.

According to analysts in the Wall Street this trade war could further increase the cost of iPhones all around the world. As a result of this the stock price of apple fell by 2% and 1% on Thursday and Friday respectively. Ives also commented that if the situation worsens in the days to come apple could mitigate the losses with a few minor supply chain tweaks. They could shift their production to India and Vietnam in the years to come.

Apple cannot completely abandon China altogether as a consumer might end up paying a much higher price. Consumers could also delay purchase or shift their brand preference elsewhere. This is a rough time for apple when this tariff plan stands to be implemented. There are official reports of Apple earning a better compared to the previous years. This period is also critical as Apple is currently in search for new customers in China.

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