Apple Increases iPhone Production After Huawei US Ban
Apple and Huawei have been neck-and-neck in regards to their global smartphone market share. The lead is taken by Samsung while the aforementioned companies go back and forth for the second place. Huawei had almost cemented its lead when the US-China trade wars severely hampered the company’s business. A new report now points at Apple raising its iPhone production following the ban on the Chinese company.
Huawei had been accused of installing backdoors on its networking equipment and providing the data to its home Government, China. The ban sought to isolate the eastern tech giant due to concerns regarding data security by the US Government. Apple is reportedly taking advantage of the ban and is increasing the production of its handsets across the entire quarter. The report has claimed that the American company will make an incremental rise over past estimates.
Apple was originally reported to have planned manufacturing about 39 million units, which has now been estimated to rise to 40 million. The increase will last till the end of Q2, that is the end of June. It has been speculated that Apple is increasing production to respond to increasing demand for the iPhone in a few markets. The increase should fill the gap in the market left behind by Huawei, one of the largest smartphone OEM.
Apple is predicted to focus 75% of its increased production on iPhone XR, iPhone XS and iPhone XS Max models. The remainder will be spread largely across the iPhone 7 and iPhone 8 lineups. The bump is a temporary measure as the tech giant cannot hope to maintain the rise in the long run. Apple could potentially warrant US tariffs on iPhone sales due to the production of its devices in China.
The US Trump ban on Huawei has barred the company from sales of technology and components from American-based companies. Apple will take full advantage of the situation to secure a lead over its crippled competitor. Furthermore, the iPhone 2019 flagship models are just around the corner. It is expected to release in September to its global audience and will be a great new addition to its wide offerings of electronic devices.