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Wedbush: Apple and Big Tech halting sales in Russia is a rounding error

In a note to clients on Thursday, Wedbush analyst Daniel Ives writes that Apple’s move this week to ban the sales of its products in Russia will prompt “more tech stalwarts to head down the same path and pull the plug on Russia over the coming weeks given the horrific atrocities seen coming out of Ukraine.”

An explosion lights up the night sky over Kiev in the early hours of Thursday, February 24th, as Russia launched an attack on Ukraine (Photo: The Daily Mail)

Ives writes:

While Apple has no stores in Russia the company sells through third party websites and partners/vendors. Apple and other tech giants have banned various Russia state controlled news outlets and apps from its App Store as well as removing traffic/live incidents from Apple Maps.

Taking a step back, the exposure to large tech stalwarts such as FAANG names and the software/chip ecosystem is a rounding error relative to the global footprint with our estimates that if the US tech world pulled the plug on Russia it would have a 1%-2% revenue impact in a worst case scenario. This is a move the Street would gladly applaud given the heartbreaking Ukraine invasion by Russia that is playing out in front of the world’s eyes.

MacDailyNews Take: Yup.

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