China can prohibit the sale on its territory of Apple products

Over the past few days in the market IT has been a number of important things worth mentioning. But let’s start with a few events earlier.

Huawei is not represented in the US market. It sells there are only a few models of smartphones, and without the support of operators. As you know, in the United States most smartphones are sold through operators, and without their support to promote its products in the country hard. This year was supposed to be a milestone for Huawei as it is supposedly signed an agreement with the operator AT&T and would have to sell the smartphones of the Chinese company. However, almost at the last moment, AT&T gave back. As it became known later, the company pushed the US government, which is afraid that Huawei is too closely tied to the Chinese authorities and may secretly collect information through their products.

It is worth noting that Huawei not only sells smartphones. In the first place is the largest player in the telecommunications market. In General, it turned out that Huawei was simply closed access to the US market. In fact, the company announced that it is ending its attempts to get there, and while we can only guess when the situation will change. But access to the American market could allow the company to greatly increase sales in the current year, especially given the extremely successful smartphone the Mate 10 and P20.

 

In addition to Huawei suspicions of the US government for a long time causes and ZTE. The company also develops and smartphones, and telecommunications, but, in contrast to Huawei, it is successfully presented at the American market. More specifically, it is there, if I remember correctly, fifth.

But just a few years ago the United States ZTE was also a large claim. In particular, due to the fact that the Chinese giant, contrary to US sanctions, has supplied its products to Iran. Come down to the fact that ZTE pleaded guilty and agreed to pay more than $ 1 billion fine. The condition was the cessation of supplies, the dismissal of top managers related to the case, and reprimanded employees below grade.

However, recently it became known that ZTE has not fulfilled the conditions. In this regard, the Ministry of Commerce has announced that it renews sanctions against ZTE. In particular, American companies are prohibited from supplying company ZTE its products, including software, right up to 2025! And it is a serious problem not only for ZTE.

Of course she will suffer the company. According to various sources, about 25-30% of the components used by ZTE for their devices, produced by American companies. In particular, ZTE will not be able to buy the platform Qualcomm, which in itself very serious. In addition, sanctions can lead to the fact that Google will have to ban ZTE to use its services. To prohibit the use of Android will not be able, as the system is formally free, but without Google services selling ZTE in many countries will be covered with a copper basin.

As for other companies, for example, the American Maynard gets about 30% of revenue through the supply for ZTE. And such companies are not so little. That is, they will suffer even more than the ZTE. They will have to reduce staff, and it is American citizens who will lose their jobs.

However, analysts believe that within three to five months, ZTE will be able to negotiate with the US, but what losses will be incurred by the company (and not only her) during this time?

And while this is only speculation, the Network appeared even more frightening information. It is reported that the Chinese government, in response, is considering a ban of sales in their territory of Apple products! And this is akin to disaster. To understand, almost a fifth of the revenue Apple gets by selling in China! If China will ban sale of products copertina, Apple will have to reduce staff by 10-20% (up to 30 thousand people!), and the company’s financial performance is strongly prosyadet. In addition, many partners Apple is also very strongly affected by fewer orders from the company. Some may even go bankrupt. But the Chinese giants like Huawei, Xiaomi and ZTE the same will benefit, as will divide a vacant piece of cake.

It is unclear how realistic such a scenario, but it’s China, so anything is possible. If such a ban is imposed, the entire market will change a lot.

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