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The US-China Trade War and Its Impact on iPhones Imported From China

October 29, 2018 / Paul Chen / Jing-Kai Huang / Curtis Su

14 Page, Radar

US$1,500 (Single User License)

Abstract

The US-China trade war is escalating. In the first two rounds of tariffs, the US has imposed duties on a total of US$50 billion worth of Chinese goods, including semiconductor ICs, car parts, machinery, and equipment. The third round of tariffs has brought the total value to US$250 billion. However, Trump has no intention to back down as he has threatened to impose tariffs totaling $500 billion on 90% of Chinese imported goods. Smartphones are likely to be on the list. As Apple has heavily relied on Taiwanese manufacturers for its iPhones, the new tariffs are likely to have a major impact on Apple iPhone's supply chain. This report starts from the background of the incident, examines the impact from the market and supply chain perspectives, and gives a brief analysis of countermeasures of iPhone partners in short and mid-to-long terms.

Table of Contents
1.Background
1.1 iPhone Likely to Become a Bargaining Chip in US-China Trade War
2.Impact Analysis 3
2.1 iPhone Accounts for over 42% of the Smartphone Imports in the United States
2.2 Impact on Supply Chain
3.Countermeasures
3.1Short-term Strategy: Adjust Existing Capacity to Increase Production in Taiwan
3.2 Mid-to Long-Term Strategy: Increase Production Share in South/Southeast Asia
4.MIC Perspectives
Appendix
Glossary of Terms
List of Companies

List of Topics
Background and current development of the US-China trade

Impact analysis of the US-China trade war when it spills over to smartphones from the industry, market, and supply chain perspectives

Short, mid- and long-term strategies to mitigate the possible impact of the US-China trade war

List of Tables
Table 1 Tariffs and Prices of iPhone X in Different Countries
Table 2 Impact of US-China Trade War on Apple’s Taiwanese Partners
Table 3 Analysis of EMS Providers’ Production Sites

Companies covered
Apple, ASE, BMW, Catcher Technology, CNBC, Coke Cola, Compeq, Delta, Flexium Interconnect, Foxconn, Genius Electronic Optical, GIS, KINSUS, KY, KYEC, Largan, Precision, Merry, Oppo, Pegatron, Samsung, Simplo, SPIL, TPK, TSMC, United States, Census Bureau, WIN Semiconductors, Winnebago, Wistron, Xiaomi, Zhen Ding

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