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!”
Mish
Apple can afford a little less income. The United States cannot afford to have China dominate trade and steal all our technology. The standard of living has gone to hell in America ever since we began offshoring our manufacturing to China and other low cost labor countries. Wealth is production, not consumption…..
RE: “Why did House Speaker Nancy Pelosi immediately call for a stop in the investigation of China’s role in the Covid-19 virus earlier this summer?”
Some would say because nobody would be happy with what any thorough investigation would discover.
I keep on urging people to do as much research on the SARS-COV2 furin cleavage site as they can …
why would you americans actually give a shit about Apple with all its abroad factories, outsourcing and taxheavens ? ….oh yeah, how stupid : STOCK !
Because the vast majority of the profits that Apple makes wind up in America? Because Apple is an amazing American brand known the world over? Seems like pretty good reasons, but I only play 1D chess so….
oh…..really ?
We have much bigger problems than WeChat or TikTok. I guess a nice distraction.
By banning TikTok in the US, about $30B is killed for TikTok (BTW many american investors are stakeholders). In retaliation by China, Apple alone will lose about 30% of its total revenues. Apple may also lose its manufacturing bases in China, reducing its productivity and thus product margin (China loses jobs). Overall Apple’s stock valuation will probably decrease by 35-50%. With its current valuation of $2T, this loss in value is about $700B to $1T. tRump must be playing 5D checkers !
Wechat is mainly used by Chinese living in the US, or some some american business people who need to keep up with their partners in China. Its owner Tencent draws about 2% of its overall revenues from the US.
?????
In what alternaverse does “stock valuation” have anything to do with “revenue.”
Talk about quaint!
Since you’ve obviously been stuck under a rock for the past 50 years: “Stocks” are, in Newspeak, shorthand for Welfare Checks. It’s how Dear Leader and those surrounding him, transfers wealth to those pliant and dumb enough to cheer for a “system” where all wealth is distributed as welfare. Rather than as a result of doing something sufficiently productive to generate revenue.
Get ready for another four years of lunacy. Biden has zero chance of winning.
Some of the things he does, I just shake my head, BUT can someone tell me about the economic plans suggested by Biden and Harris? NONE. You can expect more social justice issues and resulting divisions, reparations to further bankrupt the country and more divisions, more riots,vandalism,death and social chaos. It’s easier to take the Trump illness than Biden’s certain death sentence.
To be fair, considering Apple uses slave labor and has people jumping to their deaths making their crap for 50 cent and selling it for 1000 in the US I don’t feel sorry for them in the least. But yeah, overall pretty stupid it’s as if he doesn’t expect the other side to retaliate? Everyone talks about Trumps 4d chess. Truth be told I bet he’s a terrible 1D player because he only looks at his position. Instead it turns out being captures captures.
Ok, first of all there’s slave labor and then there’s Uighur labor. As long as Apple uses the former and not the later, they have the moral high ground.
Exactly. Same with the organ harvesting. So long as its from prisoners who are about to die anyway, then its cool.
It’s obvious that you and I will pass Advanced Moral Relativism with flying colors.
“considering Apple uses slave labor and has people”
Are you referring to the ones holed up in shacks around the Cupertino plantation, effectively forced to work what amounts to double shifts, in order not to be thrown out in the streets and having their kids taken from them? By the same idle, useless, utterly worthless and 100% expendable FIRE trash who are, like everywhere else in our little Dystopian hellhole, leeching off of anyone even remotely competent and productive in California?
Dont say you weren’t told. Trump is leading up to trying to suspend the election.
No.. he’s just trying to take away your right to vote.
You should change your name to beer goggles. The US Post Office lost $8.8 billion in 2019 and $69 Billion over the past 11 fiscal years. Do you think its a good idea to give them more money?
Yes because the republicans in 2006 forced the postal service to fund the next 75 years of retirement provisions over the next ten years…Prior to that the postal service was actually profitable. The postal service is just that….a service to the american people. In fact, the postal service is lined out in the Constitution and protected by the constitution due to its importance. Do you question the profitability of your local fire department?
Amen. Conservative hacks hate when you bring up its in the constitution. They think only things they agree with are constitutional. Mention that we are to have no standing army for more than 2 years and they start to shake and cry like little conservative babies.
Trump going to the birtherism well again. When will social media start banning outright lies.
Biden should be pretty darned immune to that. After all, he both was born, and died peacefully in his basement of old age, right here in the US of A.
The general consensus is Trump is crazy. He is doing all this to destroy and enrich himself.
But what if he is not? What if he understands how the Chinese government is trying to install itself in America’s? What if we stop for a second and understand that he has vast amounts of information and is makes decisions off that information? What if this is the correct choice for the future of this country?
We should allow the Chinese to install themselves in America. They have far less imagination when it comes to destroying the middle class.
Who do you think sent our jobs to China. That’s right. Rich white people like Trump.
#MakeAmericaBlondeAgain. #IvankaTrumpForPresident
“We should allow the Chinese to install themselves in America.”
That really is the only upside to living in a time and age where absolutely everything is as bad as they can possibly be: Absolutely any change, is for the better. Or, at the very least, say Putin offloading every bomb in his arsenal on us, a lateral move.
And what if he is just plain vanilla stupid?
He wouldn’t be President of of an undifferentiated Idiotopia if he wasn’t, now would he?
Thing is, they are all stupid. That’s a given, and will never change. If there existed non-stupids among America’s ruling class, America wouldn’t have a Fed. The whole purpose of which, is to rob non-stupid competents by debasement, in order to hand the loot, and hence power, to idle and incompetent stupids.
The only thing potentially open to change, is how much power and influence the inevitable idiots in charge, have over the lives and livelihoods of their non-stupid productive superiors.
Refer back to your first sentence, that is the correct part.
Are You Fucking Daft??? He never Listens to ALL this great information you refer to…
If he Doesn’t like it he just casts it off as “Fake News”, Just Like the Russian bounties and Virus Experts,,, What If you Stop Standing in Line to Suck his Minuscule Penis with all the other Sycophantic Faggots!!!
The short-term History books will not be kind to “buffoon” Trump…but in the distant future he will be regarded as the first President to correctly identify the danger of the Chinese freight train coming at us, and was the first to act strongly. Also, in 2239 when a young Captain Kirk is at the academy, he will be forced to learn that EARTH AND HUMANITY’S Star Fleet can trace its roots all the way back to a humble “Space Force” originated by Donald J. Trump. Sorry, but the man is an f’ing genius.
V shaped recover based on the stock market rise?
The stock market is being driven by a few stocks.
Those few stocks are are of the few companies prospering in this crippled economy.
If the market is forward-looking, what is being predicted by the stock of those companies?
What is being predicted is that THE CRIPPLED ECONOMY IS HERE TO STAY. Maybe not forever, but too damn long.
If it were predicting a return to normalcy, the rise would be broader-based.
Crush Apple! Elitists.
You sound inferior.
Can you address the V shaped recovery charts trump posted on twitter today?
The Fed has lost all control and the economy is headed for some serious trouble. Trump and his cronies know we can’t afford another $3T bailout and the Fed knows that without it the economy is destined to fall precipitously of a cliff. We are between a rock and a hard place. Time to buckle up and enjoy the ride for as long as it lasts because things are about to get really really nasty in the next few months.
Give me a break. We can’t afford another 3 trillion. Says who, you? ITS FAKE MONEY, ITS MONOPOLY WITH A LIMITLESS BANK, us normal people lost the game decades ago it now being played by a handful of super wealthy. They drop us crumbs so we don’t pull out pitchforks, and guillotines and end them. 3 Trillion is our economic output for 1.5 months. We cant AFFORD 3 Trillion, wake the F up.
All the other countries are just waiting for us to put baby to bed so the adults can talk.
If there were adults in America, America wouldn’t have a Fed.
We’re an undifferentiated idiotopia by now. Trump is just the current figurehead. Neither better nor worse than the rest of the worthless rabble.
Name a war in which only side has casualties.
What distinguishes Trump’s “wars,” is that neither side has anything BUT casualties.
For a “war” to be worthwhile, even for the nominal “winner,” it has to be fought over something which is fundamentally zero sum. Such that anything one part gets, the other don’t.
Trade is the fundamental opposite of that. As unless both sides get something of greater value than they would have without the trade, no trade happens. Hence, there can be no “loser,” among the parties, to a non coerced trade.
What do we call this? “nauseating”
Trump us thinking in terms of an election cycle. China thinks in terms of centuries. China will be fine. Apple will lose money short term. This all gets reversed quickly if Biden wins
Yes, China has been showing a lot of restraint lately. I’m sure they believe Trump will lose in November and then US/China relations will improve again. Their strategy is to just wait him out.
They released a perfectly-timed virus, because why leave something so critical (the election) to chance?
Apple will be a $10T company within the next 3 years. It might even happen within 2.
Apple will be a $1.xT company that might have a $10T price tag.
Story of America.
$50K houses for $500. $1T companies selling for $10T. A <0$ kangaroo court “legal” system, shaking down productive people for millions to trillions. Etc., etc.
And a bunch of dupes dumb enough to still be running around wondering why people are getting poorer.
That’s all that is left of what once a worthwhile place.
By now it will, literally, benefit from a takeover by the Jihadis. Dull knife beheadings and chemical warfare may not be all that either; but it’s still a heck of a lot better than the current “System” of free fall, theft and decay, with absolutely not one single redeeming quality nor virtue whatsoever.
Apple “investors” could care less.
Multiples expansion now at 35 … for years under 20. Apple just announced another bond offering at $5.50 billion. Didn’t bother to read it, but surely it .. is .. for .. stock buyback.
Only some old fogey putting pencil to paper would care about actual revenue / earnings. “Investors” only care about greater fool. With that in mind a multiple of 40? 50? Heck, lets just go all Amazon and have a triple digit one. Hoo cares??
It is for a stock buyback.
China should just stop selling things to us. Apple and Amazon will just collapse.
Great, so they issue a bond to repurchase the stock, & The Fed buys the bonds with newly issued dollars if it all goes pear shaped.
That’s how financialized dystopias work.
All money anyone has ever obtained, has been stolen from whomever earned it, and handed out to idle idiots for doing nothing aside from being reliably illiterate progressive sycophants.
Nice for the Fed favored idle idiots, I suppose.
What is truly sad, is that even most of those being robbed, are by now so dumb and indoctrinated, that even they sit there like stupid stooges cheering for The Fed to rob and debase them more. Just because the robbers put another idiot on the saps’ TeeVee screens, pontificating that otherwise “The System will Collapse!!!” Ooooh!! And, of course, being ever the pliant, bent over, indoctrinated lackeys they are, the saps are genuinely stupid enough to believe that “The System” collapsing, will result in even one single negative effect whatsoever. Such is life in a country ran solely by idiots, solely for idiots. In neither case, with eve a single exception whatsoever.
Yes but I don’t necessarily think it’s the result of some grand plan whereas from many of your posts it seems you do. The purpose of their bond purchase programs is meant to be price stabilisation but of course there ends up being lots of unintended consequences.
In this instance the authorities are negligent by allowing newly issued debt to be used for stock buybacks and IMO it should be outlawed somehow. I don’t suppose that would be easy though.
There’s no grand plan. None of these clowns would be able to pull one off even f they tried. It’s just a gaggle of mediocre petty thieves arbitrarily empowered to avail themselves of the fruits of others’ labor to their hearts’ content.
The INTENDED consequence, of “price stabilization”, when the prices stabilized are far too high already, is solely destructive. That’s before the “side effects.” There are no “positives” to go with the negatives, anymore than there is in other programs of pure theft, like burglary and bank robbery. It’s all bad. All 100% bad. With zero whatsoever exceptions. Theft is never-maybe-a-little-good.
I agree, it’s not good.
You have no idea how the markets function. How many times you see things that don’t make “sense.” This is to be taken advantage of with hedges or stop orders of some sort.
“What Do We Call This?”
All time highs on the S&P 500. Why, I don’t know.