Loup Ventures co-founder Gene Munster and Bloomberg’s Mark Gurman discuss the impact of the Huawei Technologies Co. ban and escalating China-U.S. trade tensions on Apple Inc.
They speak with Bloomberg’s Caroline Hyde on “Bloomberg Technology.”
Direct link to video here.
MacDailyNews Take: The scope of any “iPhone boycott” in China has yet to be seen.
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It’s the start of the busiest time in China when factories start to recruit thousands of migrant works and ramp up production for the iPhone. It probably means tariffs are unlikely to be applied, at least during this period. However the boycott will probably have an affect on profits unless the Chinese people ignore their government which is not very likely.
from what I’ve read the so called boycott is based on comments made by some activists on Chinese social media. Neither the Government or even Huawei top management have called for Chinese consumers to boycott Apple products
Emotion getting in way of facts. all the down votes yet nothing I said was untrue. There is a social movement against Apple but The Chinese Government etc is not boycotting Apple. Note tariffs etc is different from boycott.
What planet does Cheerleader Gene live on?
China is just getting started in retaliation to Trump’s poorly planned unilateral trade war.
China just sold $20 billion in US government debt, weakening the dollar.
Goldman Sachs predicts that Apple profits would drop about 30% if China took harsh actions against Apple akin to what Trump did to Huawei. “Should China restrict iPhone production in any way we do not believe the company would be able to shift much iPhone volume outside of China on short notice, though actions that would push Apple production outside of China could have negative implications for the China tech ecosystem as well as for local employment.”
Apple itself issued a sales warning, proving that product sales are tanking.
In the streets, Chinese are singing propaganda songs spread by WeChat: “… If the perpetrator wants to fight, we will beat him out of his wits…”
The question isn’t whether Apple will suffer in this stupid trade war, it’s how badly. US officials don’t appear to have a united front, international allies, any contingency plans, stockpiles of stuff to weather the storm, nor an end game in mind. What does Trump do instead? He picks and chooses who gets another $16 billion in government welfare, after spending $12 billion last year. What an obvious way to protect the political base from the shared pain of the destruction of world markets.
That Gene Munster is something else. He must be looking at Apple through rose-colored binoculars. Everyone else is saying Apple is going to be clobbered by tariffs, boycotts and anything else that’s bad for Apple shareholders. Apple’s value is rapidly going down the toilet bowl but I guess Munster thinks Apple will still gain about 530% over the next few years.
I’m not asking for huge gains, but Apple can’t even stay over $200 a share. While Tim Cook is demanding security and privacy for everyone, Facebook actually climbs in value while Apple tanks. Cook needs to keep his focus on building Apple into a company with some growth potential. The iPhone business is done for with little chance of recovery.
All the other major tech companies are simply breezing along as though nothing has happened with China. It’s only Apple that’s quickly losing value as big investors dump Apple stock like it was used toilet paper. American tariffs and China boycotts are again fueling the “Apple is doomed” fears. Why is Apple unable to stabilize itself despite all that cash reserve. There are tech companies with only a tenth the cash of what Apple has that have a more stable share price than Apple.
Munster needs to stop his Apple cheerleading and take a long, hard look at what is actually going on with Apple. The hate is strong for Apple in China. Meanwhile, the Chinese are coming here to America to buy up all of our property. That needs to be stopped. If the Chinese don’t want to have anything to do with America, then we shouldn’t allow them to buy property here.
Indeed. MDN whines about fake news and then searches around for opinion to post on its ad-laden website. Despite his many inside-Apple connections, Gene hasn’t been relevant for years. He’s just a brainless cheerleader telling MDN what they want to hear…
More fake news. MDN really should look up some facts before it comments stupidly on bad, uninformed news.
Munster at times is an idiot. He obviously doesn’t know what he is speaking about here, as China already has imposed tariffs on iPhones taking effect on June 1st that will bump the price about 3%, adding $30 to Apple’s costs.
“Apple’s iPhone production costs will rise as much as 3% because of new tariffs imposed by China, an analyst report said on Tuesday.
Tariffs on the device’s Chinese-made batteries and other components would increase its manufacturing cost by 2% to 3%, Wedbush analyst Dan Ives told investors.”
http://fortune.com/2019/05/14/apple-iphone-manufacturing-costs/
That story does not make sense. Why would China slap a 3% tariff on Chinese-made batteries?
Lots of reasons. All of them related to retaliation. Tariffs on exports makes them more expensive for us, and companies manufacturing in China pay the cost, passing them on to U.S. and ALL foreign consumers of said products.
China then turns around and compensates its manufacturers for lost revenue. This is what they are doing in their build up to tariff or ban rare earth metal sales to U.S. manufacturers.
All part of the “long march” strategy. China is setting up to outlast Trump. They are preparing for at least a 5 year trade war. So unless Trump offers serious concessions and a conciliatory tone, pretty much any major trade deal is off.
And this is what people like Steve Bannon actually want — U.S. moving to an isolationist manufacturing capacity. Isolationists don’t care about how tariffs and bans affect U.S. companies or consumers. They just want to nuke import trade.
Munster thinks Apple is too big to fail? Cook like every other sillycon valley CEO has made his company 100% beholden to China. It can and probably will get worse. For every patriot American who chants Boycott China!, there are 4 Chinamen. AAPL prices have only started their descent.