Apple to compromise 30% of earnings if China bans Apple products

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Experts in the mobile phone arena state that Apple’s earnings would drop by nearly 30% if China bans Apple products.

Analyst Rod Hall said in a note that Apple earnings could drop 29% if the company’s products were banned in mainland China. Hall also noted that China’s “tech ecosystem” and local employment could take a hit if Apple products are banned.

The US-China trade war could take a big chunk out of Apple’s profits if China retaliates by banning its products, Apple’s China business accounted for more than 17% of its sales in its fiscal second quarter, coming in at USD 10.22 bn.

Most of Apple’s supply chain rests in mainland China, including the iPhone’s final assembly, which is executed at Foxconn.