Apple has seen an uptick in iPhone sales, but the company is hardly celebrating the success.
Customers looking for a new iPhone have been rushing to buy them over the last few days. An escalating trade war between China and the US has led to panic buying of tech products, including Apple’s industry-leading smartphone. With tariffs escalating daily, many Americans believe that costs will soon soar for products from one of the country’s top trade partners.
While a spike in sales is good news, Apple could find itself in trouble in the long run.
Samsung Could Close the Gap on Apple
Unfortunately for Apple, the main chunk of iPhone production for US customers is in China. With the costs of all products about to become drastically higher, the company will need to pass those costs on to the customer. That will make the in-demand smartphone even more expensive, leaving some customers looking for an alternative solution.
Apple controls almost 58% of the smartphone market share in the US. Samsung is far behind at 24% but has a chance to improve. With most of its phone production coming from Vietnam and India, the company will be able to avoid the skyrocketing costs Apple will face.
Google also manufactures most of its phones in China, leaving Samsung with a massive advantage. If the trade war continues to escalate, it could lead to a significant shift in market share.
Many smartphone users are loyal to a particular style of phone, making them likely to keep buying new versions in the future. This helps them avoid having to learn a new phone, risk losing pictures or files, or deal with app availability issues.
Online Gambling Puts Focus on Performance
One new reason people don’t want to switch phone manufacturers is online gambling. The industry is spreading nationwide, leading users to demand better phone performance.
Sports betting requires players to lock in the best odds quickly. A lag in navigating the platform could result in losing out on a better price, costing bettors money.
Americans using online casinos need a phone that can keep up with the fast-paced gameplay. Slow load times make playing games nearly impossible and will send bettors looking for a better alternative.
There aren’t many complaints about the iPhone’s performance, but the same can be said of the Samsung Galaxy. Whether they are betting big on sports or spinning reels in free slot machine games, bettors will notice no difference between the two phones. If they find it similar or better, it will be nearly impossible for Apple to win those customers back.
AI Failure Continues to Haunt Apple
Apple had been working on Apple Intelligence, which would help turn Siri into an advanced AI assistant. Public expectations were high after Samsung and Google released impressive versions of their own. However, Apple’s attempt fell flat with users.
Some of the features iPhone users wanted most were left out, making the new version of Siri feel just like the old one.
AI remains one of the hottest sectors in the US. Companies from industries all over the world are sinking big money into AI projects, and many have enjoyed early success.
Apple’s failure puts it far behind its rivals. That alone hurt the company, and now the situation is expected to worsen as prices skyrocket. That will make those looking for an AI assistant unwilling to pay more to wait for Apple to upgrade.
Could the Trade War Soon End?
The US decided to pause new tariff rollouts on most other countries for 90 days. This will allow the government to negotiate new trade agreements with these countries. The move helped temporarily lift the stock market, but there is no guarantee how many deals will be made during the 90 days.
While this signals the US’ willingness to negotiate, the same opportunity was not offered to China. The Asian giant has aggressively responded with reciprocal tariffs on the US, and a war of words continues to escalate. China is currently looking to other countries for help, signaling they are not willing to end the Trade War.
The White House has also been aggressive in going after China, threatening to escalate tariffs indefinitely.
The war of words between the two sides shows a willingness for a long-term standoff. However, the alarming drops in Asian and American stock markets continue to concern the public. Leaders from both countries have strong support, but economic losses are chipping away at that.
Public pressure could force an end to the trade war. The question is how much it will take to make these two rival governments stand down.
