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Home / Apple / Bitter trade relations between the United States and China have greater implications: Goldman Sachs

Bitter trade relations between the United States and China have greater implications: Goldman Sachs



Following the trade war between the United States and China, the Trump government replied to Huawei Technologies Co. last week. This move may have other effects that the commercial war intensifies. A leading global investment banking firm estimated that "Apple's earnings would take a 29% hit if China were to oppose the United States against a ban on Apple product sales."

According to analysts like Rod Hall, "While Goldman does not consider the likelihood of a potential ban, such a restriction will represent 100% of estimated Apple earnings exposure for both mainland China and Hong Kong, provided some compensation affects cost savings in sales and marketing. " [1

9659003] Apple Stock Fall 0.5% in US Pre-Market Trading

Especially stocks fell 0.5% in US pre-trading. These bitter trade relations between the two superpowers have raised another concern for Huawei's partnership with US chipmakers, software and component suppliers.

Apart from the latest XMM modems, manufactured by Intel Corporation in the United States, all the major components, including A-series chips, memory and display, are made in Taiwan and outside China.

The rest of the iPhone supplies come from China; In this situation, if China limits iPhone production, Apple will not be able to move many volumes outside the country at short notice, Goldman believes.

Apart from the commercial consequences of trade relations, there is strong emotional learning among Chinese consumers against the original phone brand. According to the latest reports, Apple fanboys in China are ditches with the iPhone and turned to the Huawei P30, which is claimed to be faster and can take better pictures.

Wrapping up …

Apple has faced many problems in China, and so the company has begun to explore recent horizons in India, the second largest smartphone market in Asia. For this purpose, Apple plans to set up a store in an exclusive location in the heart of Mumbai, the financial capital of India.

It's all friends!

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Do you think Apple can resume its lost markets in China? The company also faces difficulties in gaining a foothold in India. Share feedback with us on Facebook, Twitter and Telegram. Also, be sure to download our app to read other news reports.

Image Credit: WSJ.com


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