Apple faces Huawei bias in China, could lose big on iPhone sales

Not only has Qualcomm scored an injunction in China against several of Apple’s more affordable — and thereby more popular — iPhone models, it looks like roll-on effects from the global cybersecurity antagonism towards telecommunications giant Huawei will further hurt sales.

Rosenblatt analyst Jun Zhang has observed that many Chinese companies have been incentivizing their employees to switch away from iPhones — Apple being the bastion of a bristly United States — over to Huawei devices in support of CFO Meng Wanzhou. Meng was arrested in Canada this month and could be extradited to the United States to face charges related to fraud and infractions on trade sanctions.

Huawei has also been locked out of 5G network equipment contract tenders by several governments. The United States has accused it of flaunting sanctions while other countries have been investigating data siphoning, network manipulation and other acts done under pressure from Beijing. The company has denied these claims.

Meanwhile, Jun Zhang believes that current model sales will be taking a cut and that will lead to Apple cutting orders to its supppliers. The iPhone XR could lose out by 2.5 million units while the iPhone XS will see a cut of 1 million units. The iPhone XS Max will have 500,000 fewer units made.

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About The Author
Jules Wang
Jules Wang is News Editor for Pocketnow and one of the hosts of the Pocketnow Weekly Podcast. He came onto the team in 2014 as an intern editing and producing videos and the podcast while he was studying journalism at Emerson College. He graduated the year after and entered into his current position at Pocketnow, full-time.