According to a note from a Goldman Sachs analyst to his clients, there is a possibility that the on-going trade war between the US and China could potentially result in the latter imposing its own set of tariffs on the fruit company. Worse still, it could just outright ban the brand’s products from the mainland. Should it come to that, it’s likely that Apple will lose approximately 30% of its total net income. That is a potential US$15 billion (~RM62.8 billion) profit loss for Apple, and it doesn’t help the brand’s situation that it already has some injunctions and lawsuits already in effect inside the mainland. There’s another more pressing matter for Apple. Lest we forget, the majority of Apple’s iPhone manufacturing is conducted within factories in China’s Guandong province. Specifically, within the city of Shenzhen. If such a ban were to come into effect – likely with immediate application by China – shifting its manufacturing operation outside of China with such short notice would near exceedingly difficult. (Source: Techspot)
