Pain for Apple- China Reason
Before the new highs Apple may make a new 52 weeks low, not just saying it because of slowed economical growth in US, global macro economic data or Apple's missed earnings. Looks like there is something bigger than all of them. Geopolitical risks and focused biggest Market share in the world (China). Because of the geopolitical risks, share holders was pushing so hard, Don't rely on China and make new investment in other countries. After long time Covid restrictions, finally board heard voice of shareholders and Investors heard about new investments by Foxconn in India. But is it ,that much easy?
Apple's moving out from China to India plan may worse idea in company history.
1) Will Chinese government let Taiwanese Foxconn move out from country?
- ( *South China Morning Post* ) Foxconn Technology Group has denied growing speculation that it is dismantling assembly lines at its production complex in the southern tech hub of Shenzhen, following concerns raised on Chinese social media that the country stands to lose its primary role in Apple’s manufacturing supply chain.
Reports earlier this month that Apple supplier Foxconn, the world’s largest electronics contract manufacturer, plans to invest about US$700 million on a new plant in India to boost local production fanned heightened concerns across Chinese social media of an accelerated shift of production away from China, as tensions between Beijing and Washington escalate. The Taiwanese company, however, has not formally announced that investment.
A representative of Foxconn on Thursday said that recent online posts – including short video clips that suggest the company was firing temporary workers and tearing down production lines in Shenzhen – were “false”, adding that the firm maintains normal operations in the city.
2) If China piss off from the news or decisions, Will they let Apple grow in Mainland China? Will they bring sanctions for Apple products?
We know China government is tough to agree and We all know What happened to Jack Ma's Ant Group and Alibaba after Jack Ma's speech. And this is catastrophic for the company if became true. Apple really trying to hard for increasing market share in China, Over 1.4 billion population, Candidate of biggest market in the world. Apple was doing good in Q4 2022 (increased market share from 18% to 22%)
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