We all know very well that the shocking ban of the US government against the well-known Chinese smartphone manufacturer Huawei continue to make themselves felt in the industry, says one of the prominent analyst Ewan Spence, of Forbes. And not only that, but even the principal analyst Ewan Spence of Forbes also warned that the next victims of these sanctions could be the tech giant Apple’s financial horizon and, of course, the success and sales of the iPhone.
Huawei Revenge! iPhone Sales Will Crash After The Huawei Ban
The shocking ban of the US government against the well-known Chinese smartphone manufacturer Huawei continues to make themselves felt in the industry, says one of the prominent analysts, Ewan Spence, of Forbes.
And not only that, even the well-known analyst Ewan Spence of Forbes also warned that the next victims of these sanctions could be the tech giant Apple’s financial horizon and, of course, the sales of the iPhone.
Moreover, the expert also explained that while there are no direct connections between the Chinese giant Huawei and the tech giant Apple, the fact is that we all have to accept that an economic Cold War could cause China to take revenge against the US for its decision to stop all the US companies from doing business with Huawei.
As undoubtedly, the enormous Chinese market is considered an area of growth for the tech giant Apple’s iPhone. Hence, the sales of hardware and the iPhone could be exploited in the short and medium term.
In these circumstances, if China restricts the tech giant Apple’s access to the Chinese market as the United States has done so with the Chinese giant Huawei, then, of course, Tim Cook’s company, Apple, would face a significant cut in profits and sales, as warned by the experts. Specifically, according to a recent note by Goldman Sachs cited by Marketwatch, earnings per share of Apple Inc. could lose 29% if its products are banned in China.
Hence, as a result, the tech giant Apple seeks to move in the future to a business model mainly focused on services. However, at the moment, it is only a potential scenario; the idea is that the tech giant Apple could face a mutual prohibition in China, which should not be ruled out, says Spence.
But, the fact is that in case if it happens, then the tech giant Apple would not only suffer a significant financial blow, but, along with the tech giant Apple, other the US compa would also lose their considerable presence in the Chinese market and could be trapped in a commercial war.
However, the founder of Huawei Technologies, Ren Zhengfei, stated, “That will not happen, first of all. And second of all, if that happens, I’ll be the first to protest. Apple is the world’s leading company. If there were no Apple, there would be no mobile internet. If there were no Apple to help show us the world, we would not see the beauty of this world. Apple is my teacher — it’s advancing in front of us. As a student, why should I oppose my teacher? I would never do that.”
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