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Tim Cook does not believe China will target Apple to retaliate against Huawei

Apple CEO Tim Cook recently stated that he really did not believe the Chinese government would target Apple to embargo, thereby retaliating what the US government is doing with Huawei. At the present time, the US has imposed a 35% tax rate for many imported goods from China, and even President Trump is planning to import any goods from China into the US. bear the same tax.

Some of Apple's Chinese accessories such as the iPhone panel have been subjected to this new tax, and Mr. Trump's intention may affect all Apple products that are and will be sold in the US market, because Most of them are assembled and imported from China. This means, or the price of Apple products will skyrocket, or Apple will suffer revenue losses to retain customers.

Worries of analysts

Many analysts have raised two main concerns towards Apple when the trade war escalates. The first is a movement to boycott Apple products in China, with many iPhone users here claiming to switch to using Huawei smartphones to support domestic products. Citi said that iPhone sales in China, one of the group's biggest markets, could be affected by 50% because of the boycott:

"The trade war with China makes Chinese people turn away from Apple products and buy alternative domestic products. Analysts predict that the reputation of Apple products has been affected in China, right after a year of 2018 with the results of sales not as expected. The Chinese market is bringing in 18% of device sales, but because of the trade war, that number may be only half. "

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The second worry is that China can absolutely choose Apple to be the subject of retaliation. Goldman Sachs even offers the possibility that iPhone is banned from selling in China, which has led to a 29% decline in Apple's global profit. They said:

“Investors asked us about Apple's financial issues in case China banned the sale of Apple products in retaliation for banning the import of Huawei devices into the United States, and stopped supply of components from American corporations for Huawei. If that happens, Apple's profits will drop by nearly 30% according to our calculations. ”

What does Tim Cook say?

Despite analysts' concerns, Tim Cook recently interviewed CBS News TV channel:

"The Chinese side have not taken any action to retaliate against Apple, and I don't think that will happen, really. I am hoping it will not happen. In fact, the iPhone is made up of components with materials produced in many countries. If iPhone sales are banned, all countries will be affected, and China is the most affected country. ”

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According to Cook, the only way to end the trade war is to negotiate and discuss any disagreement that exists, and he also wants Apple to be one of the parties to help end it. This war. Of course, Apple CEO can keep an optimistic perspective, but at the same time, he will still have to answer to investors about iPhone profits and sales as well as the impact of being ostracized by Chinese. We will wait until the end of the second quarter financial reporting period, because the number will never lie.


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