Apple’s next smartphone lineup, the iPhone 11 models, should be released this fall and many fans are expected to line up in front of the nearest Apple Store to buy it. However, as the US-China trade war continues, the iPhone 11 might get caught in the crossfire.
The trade war between the US and China might affect iPhone 11 sales
Government officials of both countries are expected to meet at the G20 summit in Japan toward the end of this month. They are going to discuss their disagreements, and Apple is hoping that the US and China will reach a resolution, otherwise sales of the upcoming iPhone 11 could be severely affected.
The trade war could result in Apple being forced to raise the price of the upcoming device, and it is rumored that the iPhone 11’s price could be raised by at least $375. Apple’s production costs could also increase if the factories will need to be moved out of China due to the decisions made by the Trump administration.
iPhone 11 models’ costs could rise by 30 percent, also reflected in the devices’ prices
Most iPhone smartphones are manufactured in China, in an integrated supply chain. This way, the company reduces costs drastically. According to some reports made by Bloomberg, Apple could lose as much as 7% of earnings if production is moved out of China.
If Apple’s costs rise by 30%, the next iPhone 11 models’ prices could reach $1,300 for the cheapest model of 2019’s lineup and $1,900 for the most expensive one. Since Apple is already struggling due to the rise of other competing smartphone manufacturers, the trade war could potentially destroy the company.
We can’t know for sure what is going to happen. The iPhone 11 lineup will be launched in September, so we will have to wait and see if the sales performance drops compared to previous models.
Sara Liard is a seasoned journalist with 15 years experience as a reporter. While studying journalism at The Art Institute of California, Sacramento, Sara wrote her thesis political corruption at the municipal level. As a contributor to Swerd Media Sarah mostly covers politics.