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Home Hardware

Apple Could Lose 30 Percent Of Revenue Due To US Executive Order

by John Law
May 25, 2019
Apple
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Ever since the US issued the ban against China, Huawei has undoubtedly been getting the short end of the stick of the executive order. But while we expect things to escalate further between the US and the Chinese brand, there is one other brand that could potentially be another casualty of this trade war; Apple.

According to a note from a Goldman Sachs analyst to his clients, there is a possibility that the on-going trade war between the US and China could potentially result in the latter imposing its own set of tariffs on the fruit company. Worse still, it could just outright ban the brand’s products from the mainland.

Should it come to that, it’s likely that Apple will lose approximately 30% of its total net income. That is a potential US$15 billion (~RM62.8 billion) profit loss for Apple, and it doesn’t help the brand’s situation that it already has some injunctions and lawsuits already in effect inside the mainland.

(Image source: Getty Images)

There’s another more pressing matter for Apple. Lest we forget, the majority of Apple’s iPhone manufacturing is conducted within factories in China’s Guandong province. Specifically, within the city of Shenzhen. If such a ban were to come into effect – likely with immediate application by China – shifting its manufacturing operation outside of China with such short notice would near exceedingly difficult.

(Source: Techspot)

Filed Under ApplechinaHuaweius ban
Updated 6:30 am, Sat, 25 May 19
http://lowy.at/xf810
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