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Each concept in your analysis must be examined in depth and used to explain why things are happening as reported in the news article(s).  For example, the chosen article may report on the increase in price of vegetables in Singapore. Your task is to apply the concept of demand and supply, together with appropriate evidence from the article or other sources, to explain the increase in price.

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Each concept in your analysis must be examined in depth and used to explain why things are happening as reported in the news article(s).  For example, the chosen article may report on the increase in price of vegetables in Singapore. Your task is to apply the concept of demand and supply, together with appropriate evidence from the article or other sources, to explain the increase in price.

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The market for used Huawei smartphones has taken a major hit since the United States clamped down on the Chinese giant and Google suspended business with it.

While a majority of mobile phone shops here said that they are still buying used Huawei handsets, they are offering steeply lower prices for them, and some shops have stopped buying used Huawei products altogether.

Customers, too, are staying away, with sales of used Huawei smartphones dropping sharply. Those still inquiring after them are largely buyers sniffing out potential bargains.

Twelve of the 18 mobile phone shops that The Straits Times visited yesterday at Toa Payoh, Ang Mo Kio and Far East Plaza said that they accept used Huawei phones, especially recent models like last month's P30 Pro. But there is a catch.

The shops say that the prices they are offering for used Huawei smartphones have dropped by $200 to $300 since the ban. They attribute this to lower demand for the phone after Google distanced itself from the Chinese manufacturer.

"We were selling 20 Huawei phones daily on average. Since the news broke, we are only doing around two to three per day," said Mr Ben Eu, owner of Kasia Mobile at Orchard Xchange.

The slump comes even though existing Huawei models, such as the P30 Pro and last year's Mate 20 series, will continue to have access to Google apps and services, including the Google Play Store. Huawei will also provide security updates and after-sales services for devices that "have been sold and that are still in stock globally".

Still, Mr Eu has stopped buying models such as last year's Huawei Mate 20 phones. "Because of the current US-Huawei dispute, dealers are keeping their stocks low," he said.

Mr Samuel Chan, a sales manager at Whymobile at Far East Plaza, said that no one is buying Huawei phones now.

"If there is a platform that Huawei can use to install apps, then we will accept them," he said.

Several other mobile phone shops also reported a drop in sales.

Meanwhile, bargain hunters are sniffing around, especially on online marketplace Carousell.

The Straits Times found dozens of Carousell listings from those hoping to buy Huawei phones at a steep discount. One user with the handle "allsortss" said he has fielded inquiries from four or five sellers despite offering just $100 to buy the Huawei P30 Pro. The recommended retail price for the Huawei P30 Pro is $1,398.

Meanwhile, telcos in Japan and Taiwan said yesterday that they will not sell new Huawei handsets, with a South Korean carrier likely to follow suit.

The handsets continued to be offered by telcos in Singapore.

Some of those who bought them recently are wondering, however, if they will be able to get refunds for them. This may depend on where they purchased the handsets from.

M1 said that "out of goodwill, it may allow customers to exchange for another handset brand on a case-by-case basis".

StarHub told ST that it will "offer assistance to customers who contact them for help", but it advised customers to reach out to Huawei if "the phones are not working as expected".

A Singtel spokesman said: "We have confirmation from Huawei that phones that have been sold continue to have access to Google services and the Google Play Store for downloads and updates, and are working fine with no service or usage impact. We are working closely with Huawei to assess any potential usage impact moving forward."

Those who bought Huawei handsets from other retailers may still be able to return them.

Courts offers a 30-day refund or exchange for unopened items, while opened items can be returned within 14 days. Smartphones, however, are ineligible for returns once opened. Online retailer Lazada offers full refunds within 15 days of the purchase for products sold in its LazMall section. Items outside LazMall have a seven-day return policy.
*Additional reporting by Jeanell Kiew and Rosalind Ang

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US-China trade war: Used Huawei phone prices plunge, but some look for bargains online

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The market for used Huawei smartphones has taken a major hit since the United States clamped down on the Chinese giant and Google suspended business with it. While a majority of mobile phone shops here said that they are still buying used Huawei handsets, they are offering steeply lower prices for them, and some shops have stopped buying used Huawei products altogether.

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SUMMARY
The sales of Huawei phones are being affected due to the ban in USA and the suspension of business between Google and Huawei. Sellers are keeping their stocks low and selling second hand Huawei phones at a much lower price compared to before.

DEMAND
"Customers, too, are staying away, with sales of used Huawei smartphones dropping sharply"

"We were selling 20 Huawei phones daily on average. Since the news broke, we are only doing around two to three per day,"

- number of customers buying Huawei handphones are decreasing due to a decrease in the demand
- possibly due to the taste and preferences of buyers, a non-price determinant of demand, not favouring Huawei.
- leftward shift in demand curve
- equilibrium quantity decreases

"The shops say that the prices they are offering for used Huawei smartphones have dropped by $200 to $300 since the ban. They attribute this to lower demand for the phone after Google distanced itself from the Chinese manufacturer."

- shows that the low demand for Huawei phones caused a drop in prices
- there is a surplus in the Huawei market due to the demand curve shifting to the left
- Downward pressure on market equilibrium causes price to decrease as well as quantity

SUPPLY
"some shops have stopped buying used Huawei products altogether"

"telcos in Japan and Taiwan said yesterday that they will not sell new Huawei handsets"

- lesser number of sellers willing to sell Huawei products, leading to a decrease in supply
- caused by expectation of sellers of the product, a non-price determinant of demand
- leftward shift in supply curve
- Leftward shift in demand curve is greater than leftward shift in supply curve
- equilibrium price decreases along with equilibrium quantity

DEMAND CURVE

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SUPPLY CURVE

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Article 1 Analysis - Elasticity of Demand

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Article 1 Analysis - Elasticity of Demand

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"The market for used Huawei smartphones has taken a major hit since the United States clamped down on the Chinese giant and Google suspended business with it.

While a majority of mobile phone shops here said that they are still buying used Huawei handsets, they are offering steeply lower prices for them, and some shops have stopped buying used Huawei products altogether.

Customers, too, are staying away, with sales of used Huawei smartphones dropping sharply."

- Huawei smartphones are hence price elastic as it is a luxury. Furthermore, the consumers have responded greatly to the ban imposed on Huawei. Hence, the demand curve will be less steep and the supply curve will shift to the right.

GRAPH

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If President Donald Trump decides to slap tariffs on the remaining billions of dollars worth of Chinese goods, Apple may need to raise iPhone prices significantly to offset the higher costs of parts, according to Wall Street analysts.

"We estimate a price increase of around 14% is required to absorb the impact of a 25% tariff, keeping margin dollars for all players in the supply chain constant," J.P. Morgan said in a note to clients Tuesday.

The bank broke down the costs of making and selling the iPhone XS with no tariffs, which is about $1,000, versus what it would cost if a 25% tariff hits China-made parts. That would take the iPhone's retail price up to $1,142, the firm calculates.

Although Trump has not decided to slap tariffs on an additional $300 billion worth of Chinese goods, the Office of the U.S. Trade Representative formally began the approval process on Monday. The earliest the new tariffs could go into place would be June 24.

Moving iPhone production exclusively to America is an option for Apple, Bank of America Merrill Lynch said Tuesday. The bank estimates a 20% price increase to the iPhone if 100% of the phone is manufactured in the U.S.

"We estimate the incremental cost of manufacturing iPhones in the U.S. could be 15-25%, and, if passed on to consumers could lead to demand destruction, in our view," the Bank of America said in a note.

But J.P. Morgan said Apple is more likely to absorb the cost of tariffs and take a hit on its earnings rather than raise the price of the phone. The bank estimates a total iPhone gross margin decrease of 4% if Apple doesn't pass the tariff costs on to customers.

Apple's stock is down more than 11% since the start of the trade war on May 2.

- With reporting by Michael Bloom.

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Apple would need to raise iPhone prices significantly to offset next tariffs, analysts say

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If President Donald Trump decides to slap tariffs on the remaining billions of dollars worth of Chinese goods, Apple may need to raise iPhone prices significantly to offset the higher costs of parts, according to Wall Street analysts.

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SUMMARY
There is tariffs imposed on iPhones and Apple might need to increase the price of it to offset the new costs. Article depicts the prediction of price raise of iPhones.

DEMAND
"The iPhone XS price would go from $1,000 to $1,142, the firm calculates, if the White House implements a 25% tariff on the rest of China imports."

- By increasing the price of iPhone, the quantity demanded for iPhone would decrease since it is more expensive and people might not be willing to purchase it since there are substitutes to the iPhone with other brands.
-This is due to the law of demand where there is an inverse relationship between quantity demanded and the price of the good(iPhone), ceteris paribus. Since the price of the iPhone has increased, there is a downward movement along the demand curve causing quantity demanded to decrease. This is caused by the income effect where buyers are less able to buy the good with the same income due to higher prices. In addition, the substitution effect takes place where people look to other phone brands as substitutes. This leads to buyers being less willing to buy the iPhone as other phone companies have relatively cheaper phones.

SUPPLY
"Apple may need to raise iPhone prices significantly to offset the higher costs of parts, according to Wall Street analysts."

- This shows that the supply would decrease. This is because by raising the price of the iPhone to pay off the tariffs parts, consumers might not want to purchase it, thus the supply would decrease due to less consumers purchasing the phones.

- The supply of iPhones will decrease as the factor price(cost of parts), a non-price determinant of supply, increases. This causes the supply curve to shift leftward as factor price is a non-price determinant of supply. This causes the an increase to the equilibrium price and a decrease to the equilibrium quantity. This is due to a shortage causing upward pressure against the market equilibrium.

DEMAND GRAPH

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article 2 analysis - elasticity of demand

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article 2 analysis - elasticity of demand

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SUMMARY
There is tariffs imposed on iPhones and Apple might need to increase the price of it to offset the new costs. Article depicts the prediction of price raise of iPhones.

“We estimate the incremental cost of manufacturing iPhones in the U.S. could be 15-25%, and, if passed on to consumers could lead to demand destruction, in our view,” the Bank of America said in a note."

- iPhones are thus price elastic since Bank of America predicts that it could lead to demand destruction. Consumers would find it too expensive and thus respond greatly to it, thus might not purchase it because of the increase in price.

GRAPH

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SUPPLY GRAPH

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HSINCHU, Taiwan/TAIPEI -- Huawei Technologies has reduced or canceled orders to major suppliers for components that go into its smartphones and telecom equipment following its U.S. blacklisting, sources familiar with the matter told the Nikkei Asian Review.

The effect on the embattled Chinese company's supply chain, including cuts to orders of as much as 30%, is another possible sign that Washington's crackdown has started to hit the world's top telecom equipment provider and second-largest smartphone maker.

At stake is Huawei's leading market share at the dawn of 5G wireless networks, with Ericsson and Nokia in close pursuit while smartphone rivals Samsung Electronics and Apple fight for consumers.

Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, confirmed that orders from Huawei have declined since the Chinese company was hit with a de facto ban on using U.S. technology. Taiwan-based Auras Technology, a top supplier of cooling modules for Huawei devices, said a Chinese customer's orders were affected, without naming the company.

A source familiar with Huawei smartphone orders told the Nikkei Asian Review that the company has downgraded its forecast for total smartphone shipments in the second half of 2019 by "about 20% to 30%" from the previous estimate following the U.S. move to put the tech giant on the so-called Entity List, which in effect bans American companies from working with Huawei and its affiliates.

Other suppliers worldwide also need to comply with the new U.S. regulation if they are indirectly shipping a certain amount of American technologies to Huawei.

"Suppliers are receiving different ranges of order adjustments," the person familiar with Huawei's smartphone business said.

"Suppliers mainly for markets outside of China were affected the most, while some suppliers that help Huawei in its home market actually benefited from the rising demand amid patriotic sentiment," the person added.

Another representative at a Huawei supplier that makes power-related components for its smartphone and telecom gear businesses told the Nikkei Asian Review the Chinese company has suspended some orders.

"We are seeing Huawei canceling some key component orders for their base-station business beginning in June, while it also notified us that it will suspend parts orders for their smartphone business after the summer," this person said. "We don't know the exact reason for the suspension and have no idea whether that could resume, but it may be that they cannot receive all the necessary materials for production after the U.S. ban."

Huawei said in a statement to the Nikkei Asian Review that its production levels remain normal. Sources close to the company downplayed the significance of the "adjustments" to its components orders.

Huawei began preparing for the U.S. crackdown more than six months ago after its chief financial officer, Meng Wanzhou, was arrested in Canada. The company stockpiled crucial chips and other components, building up supplies coverings three months to as much as 12 months, the Nikkei Asian Review first reported.

A reduction in parts orders does not necessarily indicate an immediate fall in production. It is unclear whether the scale back of orders and cancellations are because of inventory buildup or shows that the U.S. crackdown has started to weigh on Huawei's smartphone and telecom equipment businesses.

However, the scope of the U.S. ban goes beyond hardware components and may be broader than Huawei's initial backup plans. The company may not have expected that Google would suspend Android operating system updates and other signature services, such as Gmail. U.S.-based chip design tool provider Synopsys also stopped providing crucial software updates, Nikkei has reported. Meanwhile, major wireless operators in Japan, Taiwan and the U.K. have pulled launches of new Huawei smartphones, adding to pressure on its handset business, a segment in which overseas sales account for 50% of revenue.

Market watchers said the U.S. ban has also lowered consumer confidence in Huawei's products as well as operators' commitment outside China when it comes to buying new telecom equipment from the Chinese company. "We do find operators globally becoming more reluctant to place new orders to buy Huawei's 5G telecom equipment, as they are now uncertain whether Huawei could continue to deliver products that it promised without U.S. support," said Remus Hsu, an analyst at Market Intelligence & Consulting Institute.

Taiwan Semiconductor Manufacturing Co., also known as TSMC, which makes Huawei's high-end mobile processors as well as networking processors, on Wednesday confirmed that orders from the Chinese company fell.

"For us, we do see demand from Huawei decreasing but we could not tell what's the reason behind this," TSMC Chairman Mark Liu said after the company's annual general meeting Wednesday.

Liu said the production "loading" at his company's plant in Nanjing, China, is trending downward, without specifying a customer. "We see that the demand from a local high-end smartphone company is going down globally," he said. It is generally known that a majority of orders at TSMC's Nanjing plant are for Huawei.

As trade tensions between the U.S. and China escalate, Liu also said TSMC would not rule out expanding production or making acquisitions in the U.S. if the offers and the incentives there meet the company's requirements. He is heading to the U.S. this week to attend an event organized by the U.S. Department of Commerce starting June 10. TSMC also counts many U.S. chip designers that are Huawei suppliers as customers, such as Xilinx, Qualcomm, Broadcom and Analog Devices.

Without naming the company, Auras, a known Huawei supplier, said it had seen changes to a Chinese client's orders recently.

Auras CEO Steve Lin said after a shareholders meeting Wednesday that it would expand capacity for "that Chinese customer" later this year only when it is sure that the company in question can secure all of the crucial chips it needs for the next generation of smartphones.

Matthew F.C. Miau, chairman of MiTAC-Synnex Group, which counts Huawei as one of its clients, said in a speech at a forum in Taipei Wednesday that he had visited Huawei last week.

"They told me that they have preparation for this, but I am not sure whether they are just refusing to lose," Miau said. "The U.S. does not allow them to use [American technology] and this is a serious matter."

Hsu, the analyst with Market Intelligence & Consulting Institute, said he expects Huawei's market share in telecom equipment to drop this year, possibly to No. 3 behind Sweden's Ericsson and Finland-based Nokia in a worst-case scenario.

"The more worrisome thing is for next year, as most carriers are really concerned whether Huawei could still ship and work on their next generation of products," Hsu said.

For the first quarter of 2019, Huawei remained the top telecom equipment supplier with a global share of 28%, followed by Ericsson at 26%, Nokia at 18%, Samsung at 13%, and Chinese peer ZTE at 12%, according to research company IHS Markit.

Stephane Teral, executive director and a telecom infrastructure analyst at IHS Markit, said the U.S. ban on Huawei is a major disruption for the entire telecom supply chain and will damage Huawei's market share.

"U.S. vendors now have to figure out where on earth they can find a large customer like Huawei. It's harmful for everyone," Teral said.

"I think Huawei has been preparing for this catastrophic event for a long time and will be able to navigate through the turbulence," Teral added. "Huawei will likely lose market share but may be able to stay No. 1, helped by the dynamics of its home market."

Nokia said it has secured 42 5G commercial telecom equipment orders, more than Huawei has, Reuters reported on Tuesday.

Samsung is also gaining momentum. For the January-March quarter, the South Korean company picked up market share and had the strongest 5G revenue of all, Teral said.
Kim Jaewon in Seoul and Coco Liu in Hong Kong contributed to this report.

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Huawei cuts orders to key suppliers after US blacklisting

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HSINCHU, Taiwan/TAIPEI -- Huawei Technologies has reduced or canceled orders to major suppliers for components that go into its smartphones and telecom equipment following its U.S. blacklisting, sources familiar with the matter told the Nikkei Asian Review.

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DEMAND AND SUPPLY GRAPH

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SUMMARY
Huawei is cutting orders to major supplies as a result of US blacklisting. It is being banned from using USA's technology and this results in a decrease in demand for Huawei products outside of China. However, the demand in its home ground is increasing, benefitting its home market.

DEMAND
"Market watchers said the U.S. ban has also lowered consumer confidence in Huawei's products as well as operators' commitment outside China when it comes to buying new telecom equipment from the Chinese company."

- The demand for Huawei phones will decrease because customers are losing confidence in Huawei's products. This is because customers are unsure if the phones produced will be as good as before as USA is not helping Huawei.
non-price determinant: number of buyers

"while some suppliers that help Huawei in its home market actually benefited from the rising demand amid patriotic sentiment"

- When the U.S. ban is ongoing, more people in China are buying Huawei phones, meaning that the demand in China is increasing.

SUPPLY
"including cuts to orders of as much as 30%, is another possible sign that Washington's crackdown has started to hit the world's top telecom equipment provider and second-largest smartphone maker."

"Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, confirmed that orders from Huawei have declined since the Chinese company was hit with a de facto ban on using U.S. technology."

""We are seeing Huawei canceling some key component orders for their base-station business beginning in June, while it also notified us that it will suspend parts orders for their smartphone business after the summer"

- By decreasing its orders of parts for making mobile phones, this means that lesser phones can be made. This shows that the supply has decreased to 30% due to the ban imposed on Huawei by the US.
non-price determinant: number of sellers

DEMAND GRAPH
When demand increase

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DEMAND GRAPH
When demand decrease

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SUPPLY GRAPH
When supply decrease