Trump banning Huawei product
in the US was not good news for China. As it restricted the world
second largest smartphone makers from its biggest market. However, this
doesn’t mean China can’t retaliate as they can ban Apple “world’s
third-largest smartphone maker” in China.
An analyst name Goldman Sachs estimated
that if Apple is to be ban in China, it could lose 29% of its profits if
China proceeds with the ban. China is responsible for 17% percent of
Apple product sales, and such a ban could be awful news for Apple. All
of this is just hypothetical as China doesn’t have to ban Apple for
sure. However, banning them would be a statement to Trump and its
administration that China won’t be bullied into decisions, and they can
take a gutsy call as well.
Apple planning to move its production to India
Another thing which needs to take into consideration is that Apple products are manufactured in China and the loss would be quite more than just 29% for Apple.
Although there is speculation Apple is
looking at India for production and this would also help grow its market
in India. However, Apple would face many immediate difficulties. Our
analysts Goldman further says that such a move is only preferred if
Apple is thinking of shifting permanently from China. If they do so,
this would have a significant impact on China’s tech ecosystem and local
labor.
However, Apple is not the only country
who has built its products in China. There is a host of other American
companies as well. China has increased its tariffs in recent years, and
if this ban comes, many companies will surely move out of China. But
this is terrible news for the consumer as they have to suffer in the
trade war between USA and China.
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