The risk of Apple turning out to be the
“Whipping Boy” in this US China Trade spat is high . China has threatened to
retaliate without giving details and It's hard to imagine China won't respond
in kind and ban the sale of Chinese manufactured goods to U.S. companies. That
would be a catastrophic for Apple (AAPL).. This is because many of Apple's
suppliers build those parts in China. though the company's iPhones and iPads
have components that come from all over the world. Foxconn and Pegatron, are 2
major companies that do their final assembly in China
If
China decides to retaliate and ban goods
manufactured from being sold to U.S. companies, Apple's iPhone and iPad
production capabilities. would face serious setback. In 2018, the iPhone made
up 62.1% of the company's revenue, while the iPad made up 6.9%...
The
whole of Apple supply chain such as Xilinx
(XLNX), Inphi (IPHI), Micron Technology (MU), Qualcomm (QCOM), Skyworks
Solutions (SWKS), Taiwan Semiconductor
Manufacturing (TSM), to name a few...could be adversely affected
All posts and charts are for educational and illustration purposes only
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