Analyst Daniel Ives on how China's iPhone curbs could affect Apple's revenue

China's reported curbs on the use of iPhones by government staff have raised concerns among US lawmakers. They are also fanning fears that US tech companies -- heavily exposed to China -- could be caught in the storm. Meanwhile, growing competition from Huawei is also casting a shadow over the launch of much-anticipated models from Apple next week. Mr Daniel Ives, managing director of Wedbush Securities, shared more on how China's iPhone curbs could affect Apple's revenue.

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[Alice-hhkd]

Aiya...how come US government can instruct his government staff Do Not use Tiktok,
India banned Xiaomi,
why Chinese government can not ask his government staff refrain from using the US iPhone for office works
It's the right for the Chinese government to protect their ' National Security' as well, same as US government and India. Same same lah.

[johnyossarian]

Wait, wait, how does the banning of iPhones for Chinese government workers a concern for the US???

Do they allow US government workers to use Huawei phones at work? Or any Chinese made electronics for that matter?

Is this what the US means by "rules based order"?
An order with one set of rules for the US and another set for the rest of the world?

[happymelon]

Eventually, the whole world will have a supply chain that contains U$ tech, and one without.
The non U$ tech supply chain will reach a bigger market, and the U$ will lose out.
Because The non U$ tech is free of sanction

[louistan]

The threat to Apple is not the loss of sales volume but that the phone and particularly it's stock price is way over-priced. Expect the price to become more realistic.

[Alice-hhkd]

China also has security risk to concern to take 🎉🎉🎉🎉🎉🎉🎉🎉🎉

Well done China 🎉

[novaponics]

Daniel does not understand China. As a government contractor, we have to be more pro-government than the government. If you understand that, you understand China.

[bldomain]

This curbs will extend to party members eventually - all 98 million of them to show patriotism and solidarity. If including their family members then a few hundred million Chinese people will shy away from IPhone. This happened to Samsung where at one time they are the biggest smartphone vendor in China in 2013 with about a 20% market share, saw that plummet to 1% in 2018 and then dip further below to the present.

[wynetsang]

Chinese government staff should use Huawei phone instead of very expernsive US iPhone.

[lenkiatleong]

CNA should double check the source of the curb. There is no official curb found from govt institutions or even Apple.

[gaosunibu]

Why not ask Indians purchases more Iphone to get recover.😉😉😉😉

[AverageGuy]

This fool thinks everyone would buy two premium phones...😂😂 very optimistic indeed.

[jjsamuelgunn]

China ban Apple but import more durians.

[MusicisLife]

Has this Bloomberg report been verified?

[alanc]

Sounds plausible but totally untrue. Just ask any Chinese government official

[lagrangewei]

also if any "expert" tell you nm process = market lead. they don't know what they are talking about the smallest transistor you can make is 11nm, any smaller will result in data corruption because the electron can jump over the circuit, the circuit has to be thick enough to stop electron from jumping over. so while higher manufacturing precision will help you draw smaller buses, the core logic that is processing the data cannot go any smaller. unless you do stacking which is to make the circruit taller and more 3d. but that mean it will take longer to make the chip since you are building more layers.

it is very likely layering is what SMIC are doing, they are building their chip taller, which will slow down production, but it will allow them to match the performance of chip produced by TSMC easily. if you can build enough factories, it really doesn't matter if it is slower. from what I heard, the government threw 30 billion dollar into building up the fab. so I believe it checkmate, the Chinese has won by scaling.

the fact that Huawei announce 2 addition models does imply they do have the scale of production. to add insult, this would mean China can build faster chip than US, since US fab are still struggling to reach the level of SMIC, TSMC, Samsung. which are the 3 companies that can build super highend chip.... and interestingly... all in Asia... as the plans to move TSMC tech to US has been slower than SMIC homegrown tech.

expect more US sanction coming to SMIC... =) not that they can do much about it, since Hisilicon ability to make this chip means they have already domesticated the production pipeline...

[kcchong]

Do not forget that the membership of CCCP is 98 million, and may possibly be asked to refrain from using iPhone in business/official environment.

[ielee]

Any curb from a big industrailised country curb Ofcourse will be affected any company revenue. This is what the US had done to Hauwei and many Chinese companies in the past decades but China had been very patient didn't react immediately. China allow US to come to it senses and start lifting these restrictions but instead the USA apply further restrictions. Now China starts its counteractions, one at a time and hope US would change its mind and start lifting all these restrictions.

[routeqatar]

This genius analyst says 200B USD wiped out within two days are normal. LOL.

[Funktastico]

One does not simply change/adapt to a different OS ecosystem easily.

[CarpsterKing]

To every action there is an opposite and equal reaction.. The US is now going to taste its own medicine and this bitter pill is going to be very difficult to swallow...