“North Korea has been a delicate geopolitical situation for decades, with numerous U.S. presidents struggling with how to approach foreign policy with the Hermit Kingdom,” Niu writes. “Yet this last week has seen tensions escalate to new highs, following North Korea’s successful test of an intercontinental ballistic missile (ICBM) in July and subsequent reports that the country has been able to miniaturize a nuclear warhead to affix atop said ICBMs.”
“It goes without saying that the stock market, in general, does not like war. War creates incredible uncertainty that drives investors away, seeking safety and capital preservation in fearful times,” Niu writes. “If you look at Apple’s supplier list for 2016, you’ll find 29 addresses for supplier facilities located in South Korea, owned or operated by companies like 3M, Advanced Semiconductor Engineering, and ON Semiconductor, among others. If you expand to China, which would inevitably be entangled as well, there are another 354 addresses listed. Any conflict on the Korean peninsula could threaten Apple’s entire supply chain, which could potentially cripple sales.”
MacDailyNews Take: The real headline should be: “A nuclear North Korea creates real risks for everyone on the planet.”
Read more in the full article here.
MacDailyNews Take: A nuked-up Kim Jong-un nutjob with the means to deliver them to distant targets is obviously a very worrying situation for everyone on earth, one that easily eclipses Apple’s business worries.