Apple shares closed down more than 2% on Friday, with no significant change in U.S. stocks before Monday’s trading. Since this year, Apple’s stock price has risen by more than 50%. In the past year, Apple’s share price has risen by nearly 120%.
Li Xun precision (002475. SZ), an apple supply chain company, fell 4.5% in early trading and 2.27% in closing on Monday, while LG Innotek’s share price in South Korea fell more than 30% on Monday.
Tianfeng international securities released a report on the evening of August 9, saying that if the US government imposed a ban on wechat, Apple’s iPhone would suffer a fatal blow, and it could face a decline of 25% to 30% of its shipment at most. Tianfeng international advised investors to reduce their holdings of apple supply chain stocks.
Guo Mingzhen, an analyst at Tianfeng international securities, said that the possibility that Apple would be forced to remove wechat applications from Apple mall under pressure was not ruled out. Apple has removed wechat from Apple stores in India. It is not clear how far Apple will remove wechat, but it is more likely to remove wechat only in American mall.
Lin Wei, managing partner of Beijing Daxiao law firm, told reporters of first finance and Economics: “according to the US government’s ban, US individuals and enterprises will be prohibited from conducting any wechat related transactions with Tencent. However, this provision is not clear enough, and the scope of interpretation can be large or small. In the most extreme case, no one in the United States can use wechat because users and There is also a kind of transaction between applications, and there are contractual relationships such as payment and advertising. ”
Apple CEO cook reiterated the company’s position as early as 2017 on the removal of application software. “We generally don’t want to remove apps, but we do business in any country and we need to comply with the laws of that country,” Cook said
according to the analysis of Tianfeng securities, wechat has become a necessity of life in China, integrating functions such as information, payment, e-commerce, social networking, news reading and productivity. Once it is not used, people’s lives will be seriously affected, and Apple’s hardware will be particularly affected. Tianfeng Securities said that if the ban is implemented, the annual shipment of iPhones will be reduced by 25% to 30%, while that of other hardware devices, such as apple earphone airpods, iPad, apple watch and Apple Computer Mac, will drop by 15% to 25%.
However, the analysis also said that the U.S. government theoretically does not expect to make decisions detrimental to apple, but under the pressure of the election, trump may take radical measures. Tianfeng securities suggests that investors reduce their holdings of apple supply chain stocks that meet the following conditions: Apple’s revenue accounts for more than 70% of the total revenue, and iPhone’s revenue accounts for more than half of the total revenue; it is not easy to obtain orders from companies other than apple in the short term; the company significantly indicates the risk of business downward adjustment.
according to the recent financial report released by apple, the sales of the second quarter were close to 60 billion US dollars, and the sales of iPhones reached 26.4 billion US dollars; the service business grew rapidly, with revenue of 13.2 billion US dollars, up 15% year-on-year.
after the release of the financial report, Cook said that the current economic stimulus measures will help apple. Apple will not only focus on the U.S. market, but will seek growth in a broader market.
in the second quarter, Apple’s sales in Greater China increased by 2% to $9.33 billion. Apple shipped 7.7 million iPhones in China in the quarter, up 35% from a year earlier, according to canalys, a research firm. “China remains Apple’s most critical market, and we expect 20% of the iPhone upgrade demand in the future to come from the region,” said Daniel ives, an analyst at wedbush, a Wall Street investment bank
Apple has attached great importance to cultivating a Chinese developer ecosystem in recent years, which is also in line with its strategic focus on software service business. In 2017, apple mall’s revenue in China has reached $2 billion, surpassing the United States as the world’s largest market.
as an important part of Apple’s software ecosystem, wechat has countless ties with apple. Tencent has been protested by apple because it has built a small app ecosystem in its wechat applications. Apple asked wechat to pay a 30% “sharing fee” for reward income, and threatened to take wechat off the shelves if it did not pay. There was a wave of resistance to the iPhone.
analysts believe that if Apple removes wechat, it will be difficult for apple to continue the “myth” of rapid growth, and may cede the Chinese market to Chinese competitors. “Apple’s removal of wechat will not bring more benefits to itself, and the outcome is sure to be a loss to both sides.” Lawyer Lin Wei told reporters of first finance and economics.