President Trump’s Huawei ban creates concern over Apple’s iPhone business in China

“Last week, U.S. President Donald Trump effectively banned U.S. companies from working with Huawei,” Mark Gurman and Jeran Wittenstein report for Bloomberg. “That’s sparked concern on Wall Street about potential retaliation by China, where iPhones are assembled and where Apple gets about a fifth of its revenue.”
“Trump’s latest move has already prompted dire threats from China, with the country’s ambassador to the European Union warning of retaliation on Monday,” Gurman and Wittenstein report. “‘There is a potential for a boycott’ of Apple products, said Shannon Cross of Cross Research. ‘There could be a movement in China to support national champions.’ Dan Ives, an analyst at Wedbush Securities, said 3% to 5% of iPhone sales in China may disappear over the next 12 to 18 months because of the U.S. ban on Huawei,”
“Beyond China, Huawei’s problems could help Apple. Trump’s ban means future Huawei handsets sold outside China will have to run without Google’s Android operating system and crucial services like the Play app store,” Gurman and Wittenstein report. “‘These issues will reduce demand for Huawei over coming years and could give Apple an incrementally better position in the marketplace,’ said Ives.”
Read more in the full article here.
MacDailyNews Take: Pieces of leverage are designed to create concern.
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