Apple could lose 26 percent of its 2020 revenue if China bans the sale of the iPhone in the escalating trade war between the US and China, experts warn.
Investment specialists say they can be brought in as a retaliatory measure for President Trump's orders last week to blacklist techie Huawei.
The predictions come in the midst of existing fears that the iPhone is struggling in China because the brand is becoming popular among the middle class.
Nearly 20 percent of Apple's revenues came from China in 2018, while more than 60 percent of iPhone sales also came from the country.
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Apple could lose 26 percent of its 2020 revenue if China bans the sale of the iPhone (photo) in the escalating trade war between the two countries, experts warn
The latest fears that China might return as a result of the Huawei trade ban are directly related to an ongoing tariff war between Beijing and Washington.
Earlier this month, the US blocked Huawei and its 68 member companies around the world from buying important parts from US companies without special US approval.
Washington said last week that it would postpone implementation of the ban for 90 days to allow Huawei to find suppliers.
Nevertheless, American sanctions have already led to a chain reaction among suppliers of digital devices worldwide.
Two of the best mobile providers in Japan, KDDI and SoftBank Corp, announced a delay in releasing new handsets made by Huawei.
British telecom companies EE and Vodafone are also setting up plans to sell new 5G mobile phones from the Chinese company.
Even without falling back, Apple & # 39; s products in China fall out of favor with local consumers.
In recent years there has been a domestic shift towards Chinese brands such as Huawei and Xiaomi, as the brands made in China improved their technological capabilities and became globally competitive.
There is also a sense of it patriotism that supports the country's own brands, which could further accelerate the decline of the iPhone as a result of Trump's recent actions.
Although it is a & # 39; longshot & # 39; is, it can be used as a retribution for President Trump's blockade on technology giant Huawei Technologies last week
The predictions come in the midst of pre-existing fears that the iPhone is struggling in the Chinese market as the brand loses prestige among the growing middle class of the country
Krish Sankar, an analyst from Cowen, a financial services company, wrote: & # 39; Apple & # 39; s iPhone, iPad, and Mac systems run the risk of experiencing demand interruptions due to additional damage caused by the ban on selling to Huawei.
& # 39; The perception that Huawei & # 39; is unjustly punished & could lead to Chinese consumers taking revenge because patriotism is encouraging them to support domestic brands, while products and services from American companies are becoming out of favor. & # 39;
Sankar called the Apple ban a & # 39; very long shot & # 39; in a CNBC interview wherever he takes the Chinese consumer sentiment to the American telephone maker & # 39; a fluid situation & # 39; described.
When asked where their loyalty lay, Mr. Sankar said: & their loyalty turns on the price of the device.
& # 39; We saw in January that there was a very anti-iPhone sentiment that changed so much in February when Apple gave a very sweet deal – there were some price cuts during the Chinese New Year. & # 39;
A number of international investment firms have made the same predictions about Apple's potentially risky year in China, partly due to government retaliation risks and partly due to the declining prestige among middle-class consumers in China.
Citi has lowered its stock forecasts for Apple from $ 205 (£ 162) to $ 220 (£ 175), due to what they called & # 39; a slowdown in Apple iPhone demand in China as Chinese residents shift their purchasing preference to Chinese national brands & # 39;
Morgan Stanley and Goldman Sach also predicted loss of revenue for Apple in the region of 23 percent and 29 percent respectively.
The US-China trade war shot up when US President Donald Trump announced the & # 39; unfair & # 39; criticized China's trade practices and launched an investigation into Chinese trade policy in 2017.
It became more intense when Washington doubled more than two hundred dollars ($ 158 billion) in Chinese products earlier this month and returned Beijing by imposing higher rates on $ 60 billion (£ 53 billion) in American goods.
Earlier this month, Donald Trump (photo) blocked Huawei and its 68 global subsidiaries from buying major parts from US companies without special US approval.
Recent orders from Trump on Huawei have led leading mobile providers and technology companies to pause their business & # 39; with Huawei to comply with the recent US trade restriction.
UK-based chip designer ARM has told its staff to stop their business with the Chinese telecom company, while mobile operators EE and Vodafone have taken Huawei's phones out of their 5G networks.
Telecom companies EE and Vodafone that are launching their 5G services this month and in July, respectively, have left Huawei from their line-up of 5G smartphones.
EE said it had chosen to pause the sale of Huawei 5G phones amid continuing tensions between the US and the company.
They also confirmed that the Huawei equipment currently used in the network infrastructure is currently being phased out.
Nevertheless, sales of Huawei phones are growing worldwide and in March it unveiled the latest smartphones, the P30 and the P30 Pro with impressive technologies.
Huawei & # 39; s own founder and Chief Executive Ren Zhengfei told Bloomberg that not such a retaliation on iPhones by Beijing against Apple Inc. was unlikely, he would resist such a move.
When asked about phone calls from some in China to take revenge against Apple, Ren said he would protest & # 39; against such a step.
& # 39; That (Chinese retaliation against Apple) will not happen first and second, if that happens, I will be the first to protest & # 39 ;, said Ren in the interview with Bloomberg.
He admitted that Donald Trump's export restrictions built up a two-year lead built by Huawei over its competitors, but added that the company will increase its chip offering or find alternatives to stay ahead in smartphones and 5G.
HOW THE HUAWEI P30 PRO STATES WITH THE IPHONE XS MAX AND SAMSUNG
Huawei P30 Pro
6.47 in curved Full HD + OLED HDR screen
Quad Leica designed rear camera, including 20-megapixel ultra wide-angle lens, 40MP wide-angle, 8 MP, 5x optical zoom lens and time of flight (ToF) sensor, 32MP selfie camera
Enlarged camera sensors for clearer and clearer photography in low light
Super Portrait mode photos with multiple layers of bokeh (blurred background)
Face recognition and in-screen biometric security fingerprint sensor
Storage options of 128 GB and 512 GB
IP68 water resistance
iPhone XS Max
6.5 inch Super Retina OLED screen
Dual 12-megapixel telephoto and wide-angle rear camera & 7-megapixel
4K video recording at 24, 30 and 60 frames per second
Portrait mode selfies with bokeh effect (blurred background)
Face ID face recognition software
Wireless charging of the battery
Up to 25 hours of talk time
Storage options of 64 GB, 256 GB and 512 GB
IP68 water resistance
Samsung Galaxy S10 +
6.4in Quad HD + Dynamic AMOLED display
Triple lens reversing camera system – 12-megapixel telephoto
Wide angle lens and 16MP ultra wide angle lens, double 10MP selfie
8MP RGB depth camera on the front
4K ultra HD video recording at 60 frames per second
Live focus photography with bokeh effect (blurred background)
Face recognition and in-screen biometric security fingerprint scanner
Storage options of 128 GB, 512 GB and 1 TB
IP68 water resistance
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