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Apple iPhone sales could drop 50 percent





Apple iPhone sales could drop 50 percent Apple sales that's cut in half thatcould have big implications for thecompany





well sticking with tech this time iphone





gets a big warning from the street now and





Cydia is out with a call on the tech





giant saying that iPhone sales could be





cut in half thanks to president Trump's





trade war didn't Roberts is here and Dan.





you've gone through this no they're and






saying that we know that China





represents about eighteen percent of









Apple iPhone sales could drop 50 percent




iphone sales that's cut in half





Apple sales that's cut in half that





could have big implications for the





company and






absolutely and none of this should come






as a big surprise I mean for a while





there a couple months ago Tim Cook had





kind of correctly steered the narrative





away from this and he managed to





convince a lot of people that they





shouldn't be so worried about Apple's





iPhone sales in China but the truth is





they probably should be this is only one





city analyst for now that is sounding as





bearish as he is which is you know to





predicting that iPhone sales will be cut





in half but I think you might see a lot of





of other analysts follow suit I mean the





issue here is about nationalism it's





about Apple's brand image maybe being





hurt in China because of the trade war and





we just saw a very good story earlier









this morning I believe it was Bloomberg





calling attention to the US companies





that are the most vulnerable to Trump's





ongoing kind of crusade against China





it's Apple its Nike it's even Marvel to





which of course is owned by Disney to an





extent because Marvel launches so many





of those superhero movies in China but





more than any other it's Apple right now





and I think that those who tried to kind





of lessen that narrative of how









concerned Apple investors should be





about China they're starting to look a





little bit wrong especially when you led





the show today by pointing out that





President Trump yet again yesterday was





saying we're not quite there with China





it could be a while some people now are





saying that it could take years for this





really to play out completely









China is the number three region for iPhone sales





China is the number three region for Apple for





iPhone sales after the US and Europe but





I believe at one point recently was the





fastest growing so it's really hard to





diminish the impact here of the china-us





trade war for Apple yeah just I mean and





going even beyond that in addition to





tariffs one thing that the city said to





that stuck out to me was that I phone is





steadily less desirable just in terms of





a brand image so not even so much as in





terms of backlash here they're









boycotting US companies but just the





fact that hey it's not as cool as some





of the other phones that are available to





on the market right yeah I'm glad you





said that it's not just about the trade and





war although I do think that's a big





part of it that the longer that drags on





that hurts all US companies trying to do





business in China which Apple is one of





them but I also think it's that Apple to





starting maybe a couple years ago you





could argue we've discussed this when





they had the last rollout where they





revealed the 8th at the









same time as the exo were supposed to





call it 210 but kind of cannibalizing





its own new phone rollouts and





especially I think we've seen recently





that every time there's a new Apple and





phone it only looks incrementally





superior to the previous phone and so





we've seen the numbers on this we know





that people are less and less motivated









to upgrade their phones there used to be





a time when you see the new iPhone at





stage Tim Cook holds it up or way back to





when Steve Jobs and he's like oh I am





gonna buy that the second it comes out





of course I need the new phone people





don't feel that way anymore we've seen to





iphone have to offer more and more





Apple iPhone sales could drop 50 percent




incentives to upgrade the phone





Apple have to offer more and more then





incentives to upgrade the phone tradin





offers things like that so all of that





is hurting the image in China and I do





think that the crusade against Huawei 00is





going to maybe only help Huawei in China to





if it becomes a kind of nationalist for





everything and not only that but then





also just the sheer price of it when you and





compare it to a lot of the other phones to









that are made in China to





I mean Apple's iPhone could cost three





or four times as much as some of the





options that are out there - so then





that begs the question as to whether or





not the price tag is really justified





for these phones right I mean and when





Apple launched the 10 the X is some





people call it a lot of people said wow





this is evidence that Apple can kind of









charge whatever it wants and this guy's and





the limit and look at average selling to





price maybe that wasn't the case because





there has to be a ceiling on the price





especially if the phones aren't so





wildly impressive with each new





iteration yes that certainly is true all











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