Huawei V/S Apple: iPhone Sales Under Threat as Trump Bans Huawei
The shocking move from President
Donald Trump about placing the Chinese Brand Huawei in Entity List is
still affecting the industry in one or other way. Recently business
analysts from Wall Street have estimated the loss that Google has to
bear due to it. Now, Apple sales are in line regarding this ban.
Apple Sales in China Can Go Down the Drain
Huawei
has lost Android software, chip manufacturer and many other services
and products because of it. The company is facing huge disruptions now.
The effects on Google and Qualcomm is understandable but Apple is also
going to get affected by it.
This
decision of Trump has resulted in an economic war between China and
America. If China plans to take revenge on America, it can stop Apple
products from entering the country. Apple has a huge market in China for
its phones and this decision may affect its sales a lot.
Goldman Sachs has given a report about the same
Goldman
analysts led by Rod Hall wrote in a note that they have no view on a
ban or any other potential restrictions on the iPhone maker but that
they have received questions from investors on Apple’s exposure to
China. The 29% estimate is equal to $3.35 that Goldman expects would be
shaved off Apple’s full-year EPS consensus estimate of $11.47.
“This
represents 100% of estimated Apple earnings exposure to mainland China
and Hong Kong combined with some offset assumed for sales &
marketing cost savings.” This may sound like an expectation but it can
be implemented if China takes a step about it.
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