The trade war between China and the USA continues to escalate – on May 20th It was announced that Google had to withdraw the Android license from the Chinese smartphone manufacturer Huawei. As a result, “Boycott Apple” was relaunched.
Donald Trump's latest decree forced Google to withdraw the Android license from Chinese smartphone manufacturer Huawei. This step means that future Android updates will no longer be available on all Huawei and Honor devices. The Chinese response is: boycott Apple! Although the iPhone producer has been praised and even defended by its competitor Huawei, an old campaign is still making itself felt. Now analysts from the Citi Group have spoken out and issued a warning. According to them, the anti-Apple campaign in China could halve iPhone sales. Experts from the major bank HSBC have already issued a similar warning and lowered the price target for Apple shares from 180 to 174 US dollars. Goldman Sachs also recently warned of retaliatory measures from China. The investment bank's analysts predicted a drop in sales of at least 30 percent.
“Boycott Apple” gains momentum
The Citi Group report suggests even worse times lie ahead for Apple. The bank writes that the escalating trade war between China and the US has significantly worsened the situation due to the Trump administration's recent ban. According to the report, the Chinese government will look for a way to strike back – with Apple being an obvious target. Apple investors also believe it's possible that China could completely ban the sale of Apple products in the country. According to Citi Group, the consequences for Apple could be dire even without Chinese government intervention, as the "Boycott Apple" campaign continues to gain momentum. "The US trade war with China will cause Chinese citizens to turn away from Apple and instead buy domestic mobile brands like Huawei," according to an analyst note.
China is putting pressure on high-tech metals
Huawei's CEO recently tried to calm the situation, rejecting the idea of official retaliation against Apple—but so far, Trump seems determined to stoke the flames. There is speculation that China will next respond by imposing a shortage of rare earth elements—a move that has already been hinted at by a senior government official. These metals are used primarily in the production of smartphones, computers, and other electronic devices. Such a shortage could lead to supply shortages around the world.
