Prices of iPhone are expected to rise as the trade tension between the United States and China escalates. The Chinese people call for a boycott of all iPhone products in China in response to the restrictions that target the Chinese telecom giant Huawei.
United States President Donald Trump raised the tariffs from 10 percent to 2 percent on $200 billion worth of goods from China. He also ordered to impose additional tariffs on $300 billion of goods.
China retaliated on the imposed tariffs by raising duties on $60 billion American goods. The exchange of tariffs hit tech companies outside of China since most of their products are mostly assembled in China and the country is the largest market for tech products including cell phones.
The tariffs are expected to increase prices on electronics since the government is expected to raise tariffs on many finished consumer electronics including laptops and smartphones. There will be an increase in computer components including power supplies and printed circuit boards.
The effects of the tariffs go beyond higher consumer prices since China and the United States are linked in electronics manufacturing. Most of the electronics supplied to many parts of the world are assembled in China.
Users of Weibo, the Chinese version of Twitter, reacted to the pressure targeted on Huawei by rejecting Apple products. The call for a boycott on Apple products followed the United States President Donald Trump's signing of the order that bans United States telecom companies from installing foreign equipment that could threaten the national security of the United States. He also signed an order that band Huawei from purchasing United States Technology without the approval of the government.
One of the users wrote that the functions in Huawei are comparable to Apple iPhones or even better. He calls to purchase Huawei instead of Apple phones. Another user said that he feels guilty that he uses an Apple phone and said to replace it if he has the cash.
According to the report cited by Buzzfeed, the sales of Apple in China are down 2 percent in the last quarter of 218. Huawei gained 2 percent in the same period. According to analysts at JP Morgan, Apple needs to increase the cost of its iPhones by 14 percent to make up for the tariffs.
According to Apple's report, the severe macro environment in China and the assault of domestic brands' innovative products have also been reasons for Apple's continued decline.
