Trump's Tech War with China Could Cost Apple Dearly
iPhone to Become "Electronic Trash" in China
Trump threatens to ban WeTalk. If he follows through, iPhone sales in China will drop to zero.
Please consider Apple’s $44 Billion China Market Threatened by Trump WeChat Ban
Apple Inc. spent years building China into a $44 billion growth driver. Then the U.S. president last week cast all that in doubt. IPhone loyalists across China are now reconsidering their attachment to the device after Donald Trump issued an executive order last week barring U.S. companies from doing business with WeChat, the super-app that has become integral to everyday life in the country. Scheduled to come into effect in roughly five weeks, the ban threatens to turn iPhones into expensive “electronic trash,” said Hong Kong resident Kenny Ou, who sees WeChat as one of the most essential software on his handset.
If Apple was forced to remove the service from its global app stores, iPhone annual shipments will decline 25% to 30% while other hardware, including AirPods, iPad, Apple Watch and Mac computers, may fall 15%-25%, TF International Securities analyst Kuo Ming-chi estimated in a research note. Apple didn’t immediately respond to Bloomberg News’ requests for comment.
Why Stop There?
With Trump, trade wars and threats of them never cease.
After TikTok and WeChat, Alibaba Could be the Next Target in Trump's Tech War.
The United States has taken aim at some of China's biggest tech champions, from Huawei and ByteDance's TikTok to Tencent's WeChat. Alibaba, one of the world's largest retail and internet conglomerates, could be next.
The company is on the minds of US officials. Secretary of State Mike Pompeo name-checked Alibaba last week when he urged American companies to remove "untrusted" Chinese-owned technology from their digital networks.
Certain to Cost Apple?
Yes. The real question is "How much?"
Even if Trump issues clarification banning WeChat only in the US, who should believe it?
Nobody in their right mind trusts anything Trump says or does.
This will not be resolved until after the election and we get some guidance from Biden, assuming Biden wins, as I believe likely.
For discussion, please see Biden is a Huge Favorite to Win the Election.
What Do We Call This?
Hopefully, you know the answer.
We call this "Winning!"