Posted January 13, 2020 05:07:22Apple’s stock plunged on Thursday, after the Cupertino company announced that it would be moving its iPhone sales from China to the United States, a move that was expected to save $500 million in costs and allow it to sell more iPhones in the country.
The move comes as Apple looks to regain a foothold in the U.S. market after being left behind by the smartphone market in China and other countries.
Apple’s iPhone sales fell more than 50% year-to-date in the first quarter of 2020, according to the research firm IDC, while Apple’s share of the global smartphone market fell to 8.1% from 9.2%.
The Cupertinos latest move follows similar announcements from Samsung, Xiaomi, and Lenovo.
Apple had been trying to boost its presence in the United Sates market by moving some of its iPhone production to the country in the past, but was unable to find a way to do so.
This move has left the company scrambling to find ways to keep up with the pace of sales in the rest of the world.
Apple says that its latest move will save $400 million in manufacturing costs over the next four years.
It will also reduce its labor costs by $5 billion over the same period.
Apple said that it will sell up to 1.5 million iPhones in 2020.