The trade war between the United States and China has tech companies in check. One of the last facts is the Donald Trump's veto of Huawei, so the pieces of this chess game have moved around this move. Companies are beginning to take measures to alleviate possible future sanctions or even take the reins to avoid them.
In the case of Apple, analyst Cowen states that iPhone production increased in the last quarter in response to the US veto of Huawei. Concern for these devices has led to an increase in demand for iPhones in various territories, which has led to an increase in their manufacture.
Apple responds to Huawei's veto with more iPhone production
The press release published by Cowen is structured in two parts: present and future. At present it is known that the US veto to Huawei has caused an increase in the demand for iPhones in different countries of the world. This has caused Apple will increase production by about 1% this quarter (which ends at the end of June) going from the estimated 39 million iPhones to 40 million iPhones permanently assembled.
This movement is in addition to the request by those of Cupertino to their different suppliers to the diversification of manufacturers, with the aim that they are not hounded in China by the trade sanctions of the Donald Trump government. This would facilitate future penalties or lockdowns for Apple that could leave them without key components for their products.
On the other hand, there are forecasts of how they will be The iPhone 2019. Cowen ensures that all iPhone 2019 will have 4 GB of RAM and there will be a new XR / LCD version that will be presented together with the rest of the devices.
Very desperate for Apple to raise sales based on fear. In the end, the veto on Huawei was lifted but the objective has already been achieved.
It is the new commercial terrorism.