The trade war between China and the United States can make Apple plans much more complicated. If China decides to complicate the US business by rejecting Huawei's actions, profits may drop by nearly thirty percent. Goldman Sachs analyst Rod Hall told CNBC he also expects a fall in Apple's stock prices.
Sales in China account for about 17% of the global giant's business. In the second fiscal quarter, sales from local sales amounted to $ 10.2 billion, equivalent to $ 236 billion. "Whether China will limit the sale of iPhone in any way and to any extent, I believe the company will not be able to react quickly and transfer the production to another location," Hall said. "Apple will produce a new range of phones that will be released in the autumn. So even short-term issues of this type can fundamentally influence the company's business and deliver on its plans, "Hall added.
According to him, the employees of the local factories will also lose the boycott of the delicious apple products. Most of Apple's production chain still remains in China, including Foxconn's iPhone finalization.
Apple shares are currently losing about 1.5%. They have dropped by about seven percent last month. The main reason is the escalating trade war. More recently, the United States introduced tariffs of 25% for imports of Chinese goods worth $ 200 billion a year. China responds to the same policy and tariffs imposed on imported US goods with an annual volume of 60 billion Euros.
The article was prepared by editors E15.cz