How The US Ban On Huawei & ZTE May Affect Apple

In what is gradually turning into a show of strength, between the US government and Chinese Government, may soon be affecting tech giant Apple. Just recently, the US government place a ban on the sales of Huawei and ZTE (both Chinese companies) products in the US. In response the Chinese government is also planning to place a ban on some America products must especially Apple product sighting issues of national security. 


Four years ago, the Chinese government stop all government agencies from using Apple products on the grounds of national security. With the current power show between both government, Apple may soon be getting the boot from China.

For those who don't know, Apple made about $46 Billion which translate to about 19% of Apple’s total sales just last year. A recent study shows that 11% of the Chinese smartphone market is held by Apple. Also the grow of Apple products especially its smartphone business, which is great possible because of the Chinese market places Apple the world’s largest consumer market.

If the Chinese government decide to go ahead with the ban, Apple will not only be losing about 19% of its revenue, but will also be losing its spot as the world leading smartphone brand. Analyst believe that the ban on Apple products will mainly affect the US market and not the China.

The ban will see Huawei market growing since China is the largest smartphone market in the world. The absence of Apple will see Huawei most likely to gain from the $46 billion market lost by Apple. Just last year Huawei’s consumer business (including smartphone business) generated revenue of nearly $38 billion, and its smartphone shipments reached 153 million, an increase of 43.6% from the previous year. 

Apple ban may not all be rosy for Huawei, as it will be experience a stiff competition from the likes of Samsung, Xiaomi, Oneplus, OPPO, Vivo, and Meizu. The US government ban on Huawei and ZTE also prohibit the sales of product or Hardware from both companies on the American soil.


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