Trump’s ban on Huawei was no good news for China, as it effectively crippled the world’s second-largest smartphone maker from its largest source of income. But China is also in a strong position to retaliate, and in the next move, Apple might suffer.
If China doesn’t ban iPhones, nationalism alone may consume 3-5% of Apple’s revenue in the next 12 months and decrease Apple stock price by 6%. Whereas, if Apple is to be a ban in China, it could lose 29% of its profits. China is responsible for 17% percent of Apple product sales, and such a ban could be awful news for Apple. Following the ban, the stocks of the company might also drop by 30%.
These facts and figures are hypothetical, and the said move is not advised by the analysts, as it would harm the Chinese tech Eco System along with the local employment. Apple is not the only company who manufactures from China, and if the ban is imposed, other companies would also quit China. However, Apple is believed to shift manufacturing to India to grow its market in India.
Despite the steps taken by both the countries, the end consumer would be the only one to suffer. As consumers, the best we can hope for is that the US and China make up soon.
