SHANGHAI/TAIPEI – Oh boy! Apple’s having a tough time in China. Government folks over there are putting away their iPhones, causing quite the storm in the tech world. There’s this vibe that between the growing US-China tiffs and Huawei’s growing strength, Apple and its buddies might be in for a rough patch.
Man, Apple’s stocks nosedived, plunging 6.4% in just two days. That’s a whopping $190 billion gone… poof! And why? Word on the street is Beijing’s telling some of its government guys to hang up on their iPhones.
And as if that wasn’t enough, Huawei’s upping its game, unveiling two hot new smartphones. The sleek Mate X5 foldable and the spicy Mate 60 Pro+. Remember how the US tried to put Huawei in a corner with sanctions? Seems like they’re dancing their way out, grabbing the spotlight!
Down in Taipei, Apple’s mate Largan Precision – they do camera stuff – saw its shares take a 4% hit. TSMC, the chip pros, didn’t fare much better, with a 0.6% dip.
But the ripple effect didn’t stop there. Over in China, Luxshare, who make bits and bobs for iPhones and MacBooks, watched their shares slide 2%. Seems like Huawei’s big reveal last week didn’t do them any favors.
Some sharp minds think this could be Huawei’s “hold my beer” moment as they aim to give Apple a run for its money. Ivan Lam, a smarty-pants from Counterpoint, said, “This ain’t some hasty move by Huawei. They’ve done their homework.” He thinks they’re setting the stage, stealing the limelight before Apple’s next big show.
Now, China’s always had a soft spot for Apple, especially when Huawei had its wings clipped by the US back in 2019. But tables are turning. While Apple’s buddies are feeling the heat, Huawei’s pals are riding the wave. Shares in the chip giant SMIC, believed to be the brains behind Huawei’s latest gem, jumped a neat 1%. And it looks like China’s chip scene is basking in the glory too, with a 1% boost.
How big is this “No iPhone Zone” in China? Well, the jury’s out. But some insiders say even visitors at state-owned places can’t bring in iPhones. “Heck, they’re even paying folks to switch to local brands,” said a little birdie who wanted to stay hush-hush. Although, not everyone’s singing the same tune; some say they’re still on Team iPhone.
If you ask Bank of America, they’re thinking this could be a 5 to 10 million iPhone-sized hole in Apple’s Chinese sales. Huawei? They’re gearing up for a potential 65% leap in sales, thanks to their new Mate 60 Pro. Ming-Chi Kuo, another brainiac, is pretty darn optimistic about them.
However, not everyone’s in the clear. Some think Huawei’s growth could spell trouble for its local pals, like Honor. And some Wall Street wizards reckon this is a wake-up call, showing that cozying up to Beijing doesn’t make you untouchable, especially with the ever-growing US-China tug-of-war.
Uncle Sam’s keeping a close eye on Huawei’s latest moves, particularly their shiny new chip. Since 2019, they’ve been trying to keep Huawei on a tight leash. And while Huawei’s been flexing its muscles, it’s come at a price for the Chinese bigwigs.
To sum it up? The tech world’s in a whirlwind, and while some are feeling the breeze, others are caught in the storm. Stay tuned, folks!
