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Apple iPhone Production Increases Post US-Huawei Trade Tension

The ongoing trade tension will not benefit the iPhone-maker in the long run as Huawei is likely to unveil its mobile OS for customers first in China and later in other markets, stated a report.

Published: June 29, 2019 1:44 PM IST


Apple iPhone
Apple iPhone (File Photo)

San Francisco: Due to the ongoing US-Huawei trade tension, Apple has increased the iPhone assemblies and shipments to 40 million units in the quarter ending in June which was originally estimated at 39 million.

Research report publisher Cowen suggests that Apple is responding to increased demand for the iPhone in some markets following the Trump administration’s recent decision to ban sales of technology and components from the US to companies like Huawei.

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According to predictions, 75 per cent of iPhone production – about 30 million units for the quarter ending in June – will be across the iPhone XR, iPhone XS and iPhone XS Max models. The majority of the remainder is spread across the iPhone 7 and iPhone 8 models, news website Apple Insider reported.

However, the ongoing trade tension is not going to benefit the iPhone-maker in the long term as Huawei is expected to unveil its mobile OS for customers in China initially, then other markets.

According to Counterpoint Research, China is a market where Apple has been struggling as of late with total market share of nine per cent for the first quarter of 2019, whereas back in Q4 2018, that market share was 12 per cent. During the same period, Huawei’s market share increased from 28 per cent to an impressive 34 per cent.

The iPhone-maker is reportedly gearing up to introduce three new iPhones this year.

According to analyst Ming-Chi Kuo, the company will aim to sell 100 million units of ‘a 6.1-inch iPhone it’s planning to release this year’.

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