Enterprise

Apple might increase the iPhone’s price by 14 percent

Because of China and America

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Even now, Apple carries the industry’s priciest products. From iPhones to simple adapters, an Apple purchase is always hefty on your wallet. Despite the polarizing strategy, the company still attributes its success to its premium pricing. Because of tense Sino-American relations, Apple might push its pricing even further.

Recently, the US and China launched new salvos in an ongoing trade war. On Friday, US President Donald Trump imposed new tariffs on Chinese goods. The policy further strains business deals between Chinese suppliers and American companies. In retaliation, China imposed similar tariffs on American goods, taking effect in June.

Under the new tariffs, Apple faces a dangerous 25 percent import tax on their goods. For reference, the company enjoyed only 10 percent import tax on all their products. Currently, the company has saved its iPhones from the tax. However, Apple’s accessories — chargers, adapters, and cases — will suffer from Trump’s trade war.

So far, Apple has not announced any price changes. According to speculative reports, the brand is likely profiting enough from current sales, offsetting any tax changes. Likewise, Apple’s suppliers are possibly diversified enough, reducing reliance on China’s supply. Only time will tell.

Unfortunately, time will also define the iPhone’s future. Because of China’s retaliation, the US government is considering additional tariffs in the future. Under the proposed changes, Apple cannot save the iPhone anymore. According to J.P. Morgan, the company will likely increase the iPhone’s prices by 14 percent.

Currently, Apple users don’t need to worry about price changes in the immediate future. The additional tariffs will take effect on June 24, at the earliest. Even then, a definite price hike is still ultimately in Apple’s hands.

Previously, Apple already worried about similar price hikes in the past.

SEE ALSO: Apple is finally building an in-display fingerprint sensor

Enterprise

OPPO wants to build its own chipsets, hires talent from MediaTek

Also trying to tap Qualcomm and Huawei talent

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In the last few years, the US war against Huawei has ramped up considerably with no end in sight. However, though the crackdown was against only a few Chinese companies, other seemingly innocent companies have found themselves just as affected as Huawei. For one, American companies, like Google and Qualcomm, have to deal with the loss of a valued client. On the other side of the Pacific, other Chinese companies are also feeling the heat from Huawei’s troubles.

For example, OPPO has started developing its own processors in the wake of Huawei’s chip problem. Last year, the Chinese company filed a new trademark — named the OPPO M1 — through the European Union Intellectual Property Office, according to LetsGoDigital. Presumably, the new property corresponded to an upcoming in-house processor. However, the M1 has since faded into oblivion.

Today, according to Nikkei Asian Review, OPPO has not abandoned its processor project. In fact, the company has started ramping up its efforts for an in-house chip. “OPPO has been aggressively recruiting chip talent since last year as they realized that owning the chip design capability will give it more control over its supply chain,” Nikkei’s source said.

OPPO has reportedly acquired high-ranking executives from MediaTek including a former executive for Xiaomi. Further, the company has tried tapping developers from Qualcomm and Huawei’s HiSilicon.

Much like Huawei’s efforts, OPPO’s aggressive hiring aims to build a team for in-house development. Currently, OPPO still relies on third-party suppliers to build its phones like Qualcomm and MediaTek. With Huawei being attacked on all fronts, OPPO is in as much risk if the US implements a wider ban against Chinese companies. Recently, the US wants to take away Huawei’s ability to make its own in-house chips.

SEE ALSO: OPPO Reno4, Reno4 Pro specs and official renders leaked

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Enterprise

iPhone 12 series will get almost all its OLED screens from Samsung

Around 80 percent!

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By now, it’s no surprise that Apple sources some of its components from its competitors. Notably, the company obtains a portion of its screens from Samsung, one of the world’s most prominent screen suppliers. However, an upcoming report predicts a larger ratio than expected.

As reported by MacRumors, Apple will supposedly source around 80 percent of its OLED supply for the upcoming iPhone 12 series from Samsung. Meanwhile, the remaining 20 percent will come from LG and BOE. According to previous rumors, Apple was already talking with Samsung and LG prior to the report.

Of course, this isn’t the first time Samsung took a majority of the iPhone’s main supply line. Notably, the iPhone X obtained all of its OLED screens from Samsung Display. The iPhone X was the company’s first OLED smartphone.

Previously, rumors predicted five new iPhone models coming this year. Earlier this year, Apple launched the first model, the new iPhone SE. Naturally, because of the model’s budget-friendly positioning, the iPhone SE only had an LCD screen.

Hence, after the iPhone SE, Apple is still slated to launch four more models this year — presumably from the entire iPhone 12 series. According to more rumors, Samsung will provide the screens for three of these models, leaving the final model for LG and BOE.

If no further delays hamper Apple, the iPhone 12 series will still launch later this year.

SEE ALSO: Apple moving its AirPods assembly line to Vietnam

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Enterprise

Philippines wants to tax Netflix, Spotify to increase coronavirus relief funds

Might add 12 percent to current prices

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After two months of community lockdowns, the Philippines’s response to the pandemic remains controversial at best. At the time of publishing, the country has 14,035 confirmed cases of COVID-19 and 868 deaths.

Recently, Congressman Joey Salceda, currently chairing the Committee on Ways and Means, has proposed a new tax aimed against the country’s biggest social media and entertainment platforms: Facebook, Google, Netflix, YouTube, and Spotify.

Currently, the globally recognized companies are not taxed for putting up ads for goods on online marketplaces in the Philippines. Meanwhile, other entities still pay the 12 percent value-added tax.

As reported by Reuters, the proposed tax will siphon more funds into the country’s pandemic response, including a “national broadband project and digital learning [programs].” However, the bill’s provisions are not available to the public yet.

According to the Philippine Daily Inquirer, the tax is against both currently untaxed advertising and services. For merchants selling goods and advertising online, “only 50 percent… pay VAT.” Further, Salceda proposes that digital advertising, especially those done by foreign companies, must course through an official country representative.

For services, Salceda suggest an additional 12-percent tax on entertainment subscriptions. However, a big question lies on who will ultimately carry the blow of the new tax. Is it the company itself or the consumers through higher subscription fees? Right now, Netflix and Spotify subscriptions are slightly lower than their American counterparts. Netflix Philippines has declined to comment.

However, as a bill is still just a bill, no one knows if and when the new tax will push through.

SEE ALSO: Netflix is raising $1 billion to create more original content

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