HomeAppleApple profit could fall up to 30% if China bans Apple

    Apple profit could fall up to 30% if China bans Apple


    Reading Time: 2 minutes read

    It’s time for China to take revenge against the United States. All of Apple products are manufacturing in China. This includes iPhone, iPad, MacBook and Apple Watch are the main product which produces by China. If you notice in all of the Apple products. It says “Designed by Apple in California. Assembled in China.”. After the US government bans Chinese tech company from doing business with US companies, now China could make its move too by banning Apple products in China.

    Image result for apple made in china
    Image from SteemIt

    According to Goldman Sachs analyst, Rod Hall says Apple could lose more than 30% of its profit if China bans Apple. This was written by him to his clients. If the trade war between China and the United States continues, the American tech giant income might fall more than $15 billion annually.

    Apple’s main manufacturer Foxconn is based in Shenzen, China. According to Hall, if China bans Apple, immediately all its productions has to stop immediately. Surely Apple won’t be able to move its manufacturing plant outside of China in a very short notice. Before this itself, Apple has already started to move its iPhone production such as the iPhone XR to India. This is because China increases its tariffs on all US imports. Most probably, by next month Apple will start its iPad and MacBook production in Indonesia too.

    Image from TechSpot

    However, if China bans Apple, its local economy will be terribly affected. For example, most of the Foxconn workers could lose their jobs after China bans Apple. At this moment, the US government has given a temporary license for Huawei to continue doing business with China for 90 days. Once the license is expired Huawei has to plan its contingency plan.

    In conclusion, China should think twice before banning Apple in China. If the trade war between this two countries continues, we can start to expect a drop in the global economy.

    Raaj Lokanathan
    A software engineer as a profession. A tech blogger as a passion.

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