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Home / Technology / Apple could face another China headache – The Motley Fool

Apple could face another China headache – The Motley Fool



The continuing trade war between the United States and China could demand a significant toll on Apple (NASDAQ: AAPL) per trade.

Per report Nikkei Asian Review after the arrest of Huawei CFO Meng Wanzhou in Canada at the request of the United States, "[many] Chinese companies have informed their employees that they will receive subsidies if they Huawei -Smartphones buy to get the support company. "

  People gathered in front of Apple's Nanjing store.

Buyers outside the Apple store in Nanjing, China. Will the crowds be slack? Source: Apple

These subsidies should be between 1

0% and 20% of the purchase price of the equipment, although the report states that "some [companies are] even cover the entire amount."

Here's the reason If you're an Apple shareholder, this message should be a break for you.

Apple's China Engagement

Apple is doing a lot of business in China. The company reported sales of approximately $ 52 billion in the Greater China region in fiscal 2018, accounting for approximately 19.6% of sales, according to the company's most recent annual filing. Of the five geographic regions for which Apple provides sales, Greater China is the third largest company after Europe and America.

Region Apple fiscal year 2018 revenue revenue share
America $ 112.1 billion 42% $ 62.4 billion 24 % 24% China $ 51.9 billion 20%
Japan $ 21.7 billion 8%
Rest of Asia Pacific Territory $ 17.4 billion 7%
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