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China Trade War Could Make iPhones 3% More Costly

18 May 2019

They'll feature designs that are identical to the current iPhone XS series phones on the front, and the back will be the same apart from the new triple-lens camera array expected on both new iPhones.

An escalation in the US-China trade war that culminated last week with the US raising tariffs on $200 billion in merchandise from China has been especially alarming for Apple investors. The Dow Jones Industrial index dropped 2.6%, and the Nasdaq Composite dropped 3.5%.

Asides from increasing the price of its handsets, which J.P. Morgan's estimates suggests would see the price of the entry level iPhone XS increase from $1,000 to $1,142, Apple could absorb the tariffs themselves, or work with suppliers to negotiate better component pricing to help reduce the overall production cost of the handsets, thus reducing the amount taxed for each iPhone imported.

Well... we thought of a few features we'd love Apple to introduce with the next iPhone release, and whilst some of them are pie-in-the-sky thinking, others may actually happen... Big tech stocks were among the worst hit.

Apple reported $51 billion in revenue in 2018 from "Greater China", which includes Hong Kong and Taiwan. "A large-scale move out of the country would not only be costly, but could take multiple years to complete", writes Huberty. That's Apple's third-biggest region, after the Americas and Europe. In 2018, that region amounted to $51 billion in revenue, nearly a fifth of Apple's total revenue for the year.

It's that time of year again, when rumours about Apple's latest crop of iPhones begin to surface ahead of the usual September launch.

"It's clear that the economy began to slow there for the second half and what I believe to be the case is the trade tensions between the United States and China put additional pressure on their economy", Apple CEO Tim Cook said in an interview with CNBC in January. - Apple has so far absorbed the cost of this tax without increasing prices for consumers.

Shares of Apple (AAPL) rose 1.1% in pre-market trading.

China Trade War Could Make iPhones 3% More Costly