iPhone, China worries: Apple burns 200 billion in value


By John

Apple burns $200 billion in market capitalization in two days with investors alarmed by the possibility of China banning iPhone use for government employees. A slip that casts a shadow on the launch of Cupertino’s new smartphone scheduled for next week. The rumors about the Chinese stakes on the iPhone and Huawei gaining ground threaten Apple’s race for the overtaking Samsung as leader of the global smartphone market. In fact, analysts predicted until a few days ago that the iPhone 15 which will be launched in a few days would mark Cupertino’s great leap, making it affirm for the first time as the largest smartphone manufacturer in the world by volume. But the possible Chinese tightening – which caused a decline in stocks by 6% in the last two sessions – puts the expected overtaking at risk considering that China represents a fifth of the Silicon Valley giant’s revenues.

A decade ago it seemed impossible just to think that Apple could compete with Samsung for the scepter of queen of the world. Over the years, however, the goal has appeared increasingly within reach, thanks also to the crucial role of the Dragon. According to Bank of America, Apple sells at least 50 million iPhones a year in China and a possible ban on public employees would result in the loss of 5-10 million in sales. Another threat to Apple also comes from China: Huawei. The giant launched its latest smartphone in recent days, the Mate 60 Pro, which appears capable of delivering 5G speeds despite US efforts to limit Huawei’s ability to get its hands on the latest generations of chips. The Mate 60 Pro, according to some rumors, has been snapped up in recent days with thousands of copies sold. Some analysts estimate that Huawei could sell up to six million units of its latest addition by the end of the year, increasing its 2023 deliveries by 65%.

Apple will challenge Huawei with its own iPhone 15 which, despite the expected high price, could record record sales in the last three months of the year, those of the Christmas holidays. Sales that could allow Apple to take the crown from Samsung for the first time, 16 years after the launch of the first iPhone.