China USA trade war: Apple would suffer more than Huawei:
“Designed by Apple in California Assembled in China”, we have been so familiar with this line on every apple product. What will be the embossed tagline in Apple product if Apple gets banned from China market? Will it get erased?
President Donald Trump has released the Execution order to ban Huawei from the US following the ongoing China USA trade War. Now, there are several could be that as China can retaliate. All the companies including Android, Google, ARM, microSD and Wi-Fi Alliance are now terminating their service to the Huawei company. As the second largest smartphone company and largest telecom equipment (from batteries to tower) supplier, Huawei must find a secondary source for continuing their production. However, Huawei gets 90 days period by the US. After that Huawei won’t get any Google updates, any handset component, and network components.
On the other hand, as trade combat what if China bans Apple from its market. An analyst name Goldman Sachs estimated that if Apple gets banned, it could lose 29% of its profit. Apple And also, it could affect the assembling of apple products. The loss would be 29% plus. Apple being such a large company with sophisticated design, it relies on China for manufacturing. According to Apple’s CEO Tim Cook, one of the major reason why Apple likes to be in China is “China has extraordinary skills. And the part that’s the most unknown is there are almost 2 million application developers in China that write apps for the iOS App Store. These are some of the most innovative mobile apps in the world, and the entrepreneurs that run them are some of the most inspiring and entrepreneurial in the world. Those are sold not only here but exported around the world.” Apple would lose it’s such an attachment with China if Apple gets banned from China.
Apple would never get required preciseness and would never be in shape it is now if the company would have to shift iPhone assembly outside to chine. Last Year Apple ranked fifth in China with a 9.1% share, which fell to 7% in the first quarter. Analyst says, with this ongoing banning Huawei conflicts nationalist sentiment could act to Huawei’s favor and hurt Apple’s sales in China. Apple’s China business accounted for more than 17% of its sales in its fiscal second quarter, coming in at $10.22 billion. The company also sells billions of dollars’ worth in iPhones every year in China. Apple would have to cut the huge chunk of its production volume.
These are all just possibilities on the basis of past analysis if and only if China Ban Apple. But even if China doesn’t ban Apple products the peoples will surely stop buying apple product based on nationalistic stance.
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