OMG! Chinese Govt Is Now Banning Apple Products In China
The US ban on the world’s second largest smartphone manufacturer Huawei could simply further complicate the tech giant Apple’s previously complicated operations in China, hence, as a result, this could simply lead reducing iPhone sales in the world’s largest smartphone market and disrupt the company’s supply chain in China. As we all know very well that last week, the President of the United States, Donald Trump banned all the US companies from working with the Chinese giant Huawei. As this decision of the US President, Donald Trump has fueled the concern on Wall Street about the possible retaliation with China, where the tech giant Apple’s iPhones are assembled and not only that even the tech giant Apple also gets about a fifth of its revenue from China. When the tension between the US and China escalated late last year, some economists had already said that there would be an informal boycott could take place by the Chinese consumers against the US products, including the tech giant Apple’s iPhones. However, after the tech giant Apple reported disappointing results, the CEO of the Apple, Tim Cook has said that for this disappointing result the trade war is notably responsible. As, the President of the United States, Donald Trump’s latest decision has already provoked serious threats from China and the country’s ambassador to the European Union warned about the counterattacks. Hence, “the tech giant Apple could simply lose almost a third of its profits if China bans its products”, as the analysts at Goldman Sachs has already stated this week. Dan Ives, an analyst at Wedbush Securities, said that between 3% and 5% of iPhone sales in China could simply disappear in the next 12 to 18 months due to the US ban on the well-known Chinese smartphone manufacturer, Huawei. Moreover, according to the Lynx Equity Strategies, “if China does not counter directly, nationalist sentiment will likely affect the tech giant Apple’s sales in the country and could cause the company to miss its third-quarter fiscal forecasts”, however, for now, the tech giant Apple has not yet commented on this issue. But, at the end of April, before the US President Donald Trump’s ban on the Chinese giant Huawei, the tech giant Apple has reported slightly better iPhone sales in China. As the CEO of the tech giant Apple, Tim Cook has stated that “There is better trade dialogue between the US and China, and from our point of view, this has affected consumer confidence in a positive way”. However, we all know very well that the tech giant Apple is not the only company who assembles its products in China, as along with the tech giant Apple there are other American companies as well who assemble their products in China. Hence, if the ban remains active then simply companies will move out of China. In short, this is very bad news for the consumers, as apart from the companies, they are the only ones who have to suffer in this current trade war between two giants, of course, the US and China. So, what do you think about this? Simply share all your views and thoughts in the comment section below. And if you liked this post then simply do not forget to share this post with your friends and family.
