Apple is in trouble .. The company's share is down 6% and investors are afraid

science and technology

A recent report showed that the demand for iPhone phones could be significantly reduced due to the Sino-US trade war, because Apple is expected to raise the price of its devices, which will push users to retreat from the modernization and purchase of new devices.

If the company will absorb the cost of the tariffs, which Morgan Stanley sees as a more likely scenario, analysts estimate Apple's earnings could fall by about $ 3 per share in FY20.

A report from the Wedbush Securities L Daniel Ives And Strecker Backe The cost of making phones iPhone May increase by 2% to 3% as a result of the tariff, Apple shares fell by about 6% a day as a result of new decisions.

Tim Cook

The reason for the impact of the US trade conflict on the company, is that Apple largely depends on the plant Foxconn Which is based in China to produce iPhones, but the company can look to turn its industries into other countries, such as India and Vietnam.

The company is preparing Foxconn Also to start assembling iPhone phones on a large scale near Chennai in southern India, Reuters reported that Foxconn plans to open a factory in Vietnam, citing local media reports.

China is a big market for iPhone phones this year, it estimates Wedbush Said that 60 to 70 million iPhones in the region will be upgraded over the next 12 to 18 months, which will account for about 20 percent of all iPhone upgrades by 2020.