The worst-case scenario for AAPL in China could be a 29% drop in the company’s total global profits, warns Goldman Sachs. The bank says the escalating trade war between China and the US, wors…
I am fascinated with this story because I wrote an article back in 2017 titled “Tim Cook will soon have to choose between China and the U.S.”. Tim Cook is the current CEOof Apple.
This trade war will not end well for China. Apple may be caught in the crossfire but will recover. It will be an expensive recovery as they retool their entire operation to develop their products in America although the article notes this will never happen. I am of the opinion that Apple will start shifting their manufacturing to the U.S. to avoid this potential scenario at a future date.
We are China’s biggest customer of their cheap goods so go ahead China. Alianate your biggest customer. See what happens. The alternative is much better for the U.S., companies buld their products here which leads to more jobs and more money here at home. I am all for it.
Time Cook, the time has come to build all your products at home and all other companies better heed this warning… America First!
China was luring American companies to their shores to steal their innovations and then give them the boot when they are no longer needed. If your an American doing business in China, time to cut your losses.