Huawei-Style Ban on Apple Would Be Devastating for Profits


Apple is weighing in on its side of the Huawei debate and the company is being pretty unequivocal in making it known that, if a similar “ban” were levied on its products, the results would be a disaster for Apple’s profits.

apple store
Image by Stephen Lin

In fact, such an action by the PRC government would add some 25 percent to the cost of the base iPhone, a situation that Apple desperately wants to avoid if possible. Apple outlined the consequences for just such a retaliatory move in a report to US Trade Representative Robert Lighthizer wherein it was described just what products would be impacted and how.

To cut it to the quick, basically everything Apple makes would be impacted in one way or the other The Verge reports. Aside from making its products more expensive, Apple also thinks that such a retaliatory action would make its products less competitive in the Chinese market when compared to domestic and other manufacturers. This could result in even further declines in the future as Apple’s ability to compete on a level playing field with these companies shrinks.

Of course, Apple isn’t the only company that would be impacted by a set of tariffs from China. Every major US tech firm would suffer some kind of loss or setback and this is something none of them want. As a matter of fact, it is being reported that many US companies are lobbying the Trump administration behind the scenes to reverse the belligerent approach to trade that has lead to the present situation.

Looking beyond China, it is also being reported that Apple is looking at moving its production out of the country to the extent that it can with The Verge reporting that Vietnam and India being two of the top contenders.

As always we’d love to know your thoughts on this story. You can leave them in the comments below.

You can read more news on Light Stalking by clicking here.

[The Verge]

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