iPhone Sales in China Increased by A Third in the Second Quarter

The British “Financial Times” website published a report on August 19 entitled “After Huawei was sanctioned, China cautiously retaliated against US companies” stated that China did not simply retaliate against Chinese and American companies, but established a reliable image and kept the door open.

The Trump administration has targeted some of China’s largest technology groups, which raises concerns that American companies may face strong retaliation.

However, despite increasing pressure to impose similar restrictions on US companies in China, Beijing has historically been reluctant to retaliate. Analysts believe that Beijing officials are unwilling to undermine the economic benefits and innovation brought to China by American companies.

Since Beijing announced in 2019 that it would develop a “list of unreliable entities,” investors have been worried that China will target foreign companies.

From technology groups to automakers, China is a huge market for many American companies. About two-thirds of US semiconductor manufacturer Qualcomm’s revenue comes from China, and more than one-tenth of the sales of American brands from Nike to Starbucks rely on Chinese consumers.

However, American companies in China have basically not been restricted or investigated by the Chinese government.

Apple is a big competitor of Huawei in the smartphone market. Although the company recently had a dispute with regulators over its game license issue in its app store, its revenue in China continued to grow. According to data from Conte Point Research, iPhone sales in China increased by a third in the second quarter of this year.

Since the United States included Huawei in the list of entities last year, it has already had a certain impact on Huawei’s operations. Since May this year, the United States has successively upgraded its sanctions on Huawei, completely cutting off the supply chain of Huawei’s self-developed chips. I originally thought that this was Huawei’s biggest crisis, but recently foreign media said that Huawei will face a bigger crisis.

Today (24th) news, according to the latest report from foreign media, with the further escalation of the US crackdown, in addition to severe restrictions on the chip, Huawei may also be implicated in the supply of mobile phone memory chips.

In accordance with the requirements of the ban, the use of US technology or software as a basis for foreign products, and the use of such foreign products in the production or development of any parts, components, and equipment are prohibited. Huawei related subsidiaries in the entity list are prohibited from playing the role of purchaser, intermediate consignee, and final consignee.

According to reports, South Korea’s Samsung Electronics and SK Hynix are using electronic equipment made in the United States, and their electronic equipment is mainly exported to Huawei and other Chinese companies. Nearly 20% of Samsung’s revenue in the most recent quarter came from China, while 40% of Hynix’s revenue came from China.

In addition to the processor, the storage chips of Samsung and SK Hynix are also extremely important for smart phones. If the supply to Huawei is completely cut off, it will cause a big blow to Huawei’s mobile phone business.

China has never banned US technology companies from coming to China, Google has withdrawn by itself

TikTok is already hanging by a thread in the United States. Trump said on Friday that TikTok may be banned on Saturday as soon as local time, although he did not do so on Saturday. This has put even more pressure on the rumored negotiation between TikTok parent company ByteDance and Microsoft, causing ByteDance. It becomes very difficult to keep holding a little share or to sell a little more.

 

 

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iPhone Sales in China Increased by A Third in the Second Quarter - /10

Summary

The British "Financial Times" website published a report on August 19 entitled "After Huawei was sanctioned, China cautiously retaliated against US companies" stated that China did not simply retaliate against Chinese and American companies, but established a reliable image and kept the door open.

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