Apple (NASDAQ:AAPL) to fall on Monday in response to concerns raised in relation to the tensions, China-USA, after that companies in US are beginning to enforce the decree of Donald Trump to do more to maintain links with Huawei, leaving fear of retaliation on the part of China.
And in this context, Apple is clearly a figure of ideal target…
This is highlighted by Erwan Rambourg, analyst, HSBC (LON:HSBA), has reduced on Monday its target price to 180 $ 174 $, noting that the company is facing two major challenges in China under the framework of the trade war.
Chinese consumers, could “accelerate” their adoption of alternatives local to the iPhone, as trade tensions escalate. And even those who want to buy iPhones, it can be difficult to do if a new wave of tariffs hits the smartphones, which could prompt Apple to increase prices.
“We believe that an escalation or an extension of trade tensions is likely to impact on how chinese consumers perceive the products of american brand, mainly the iPhone, and given that China plays an important role in terms of income of products and services for Apple, this remains a key risk” , he stressed.
For his part, Tim Barajin of Creative Strategies points out that ” China could retaliate by banning u.s. products in the chinese market using the same pretext (espionage), even if it may be fake “.
“This fight blow for blow could be disastrous for any company that sells a lot of products in China, especially technology products, if it is banned for any reason whatsoever in the context of a retaliation from china. “
In the end, no sanction chinese toward Apple has so far been raised by the chinese government, but the market seems to consider that the company has a “big target on the back” in the framework of the trade war, if China wants to respond in a way comparable to the banning of Huawei’s United States…