If China "responds" to the Trump administration, Apple may lose up to 29% of its profits - VnReview
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If China "responds" to the Trump administration, Apple may lose up to 29% of its profits – VnReview

Analysts believe that, if China retaliates to the United States by putting pressure on Apple, Apples' profits could be reduced by up to 29%.

Trump's ban may be bad news for China because it crippled the supply of the world's second-largest smartphone maker. But surely, China will not leave the United States alone after a sudden blow to Huawei's "pet". The first thought, obviously, will be Apple.

Analysts from research firm Goldman Sachs estimated that Apple could lose up to 29% of profits if China aggressively "retaliated" America. Currently, 17% of Apple's sales come from China, so if such a move occurs, Apple will certainly suffer significant damage.

Note that this is only a hypothesis and it is not clear whether the Chinese government intends to do so. Because if China is "tough" with the US, it is not known how the trade war will escalate.

On the other hand, the 29% figure is just an estimate of Apple's loss if its device sales in this market decline. It is worth mentioning that most Apple products are manufactured in China so it can easily apply taxes or perform a series of other financial attacks to force Apple.

But of course, the problem always has its sides. If Apple suffers a loss, Chinese manufacturing partners will suffer up to five or six parts. Obviously the move to punish Apple is hard to apply for a long time, because China's mobile industry relies heavily on Apple's orders. If iPhone sales decline, it will also lead to many manufacturing factories closing down, threatening the livelihoods of many workers.

Analysts are currently focused on analyzing the impact on Apple, while many other US companies are also ordering production in China. For its part, Apple has long been at risk, so it took the initiative to take into account iPhone manufacturing solutions in other countries to avoid tariffs.

Pegatron, a major iPhone assembly partner, after Foxconn has actively invested in the construction of a $ 300 million iPhone factory in Indonesia recently.

Tien Thanh

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