Massive iPhone demand to lift Chinese exports

iPhone production will boost Chinese trade
THE LAUNCH of Apple’s new iPhone will be so significant that it will add a percentage point of growth to Chinese export growth, according to analysts’ estimates yesterday.

Researchers at Bank of America Merrill Lynch say that the release will be so significant it could boost mainland China’s exports by around one per cent for the rest of 2014.

The effect for Taiwan is expected to be even more pronounced: economists expect the phone to boost exports by two per cent each month between August and October, and a further one per month between November and January.

The sales are even expected to raise the island nation’s GDP growth by 0.4 percentage points.

On Tuesday, Apple is expected to unveil two new iPhones, with larger 4.7 and 5.5 inch screens that have a higher resolution than Apple’s current iPhone lineup. These are likely to be built by its Chinese partner Foxconn in the coming weeks.

The new iPhones are expected to include near-field communication, a short range wireless technology similar to Bluetooth, as part of the launch of an Apple payment platform that it is reportedly preparing to launch after securing agreements with Visa and American Express.

Executives at the tech titan are said to be preparing to launch a so-called iWatch, a wearable smartwatch device, which is not expected to go on sale until early 2015 and could be priced around $400.

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