After Huawei's very bad week, many expect China to retaliate
|May 23||Public post|| 2|
Greetings! Coming right up, the most interesting stuff about Apple in the past week. — Please forward this email to anyone you think might find it interesting.
What. a. week. Honestly. What's transpiring these days with Huawei will reverb for a few years, but this is a publication focused on Apple. Let's dive right in.
Many have argued about what this means for Apple. As a quick recap, here's what we do know.
The good news is that China is silent about Apple, as many expected swift retaliation. The bad news is: China remains silent about Apple. — I would love to just peek into what kind of corporate diplomacy Apple is doing right now.
New tariffs from both sides could hurt, yes. But they look manageable.
"People in China are calling for a boycott of Apple". Time will tell, but it's very hard –almost impossible– to gather sentiment like that in China.
Tim Cook said Apple was "excited" about trends in China, and then everything started tanking. Q3 was supposed to bring some balance. Maybe not so much now.
Wedbush Securities: 3% to 5% of iPhone sales in China may disappear over the next 12 to 18 months.
Goldman Sachs: Apple could lose nearly a third of its profit if China retaliated by banning its products.
Credit Suisse: every 5% drop in China sales costs Apple 15 cents in EPS. Apple has lost almost a third of the stock gains from recent months.
Huawei and Apple are just pawns now, and we'll have to wait to see where this is going. In my opinion, the ban on Huawei has been worse than expected, with British and Japanese firms joining.
The Supreme Court will hear the App Store Monopoly case. 5-4 decision, with the majority arguing they just don't understand Apple's framing of the issue as a price-fixing monopoly (which of, course, the App Store is not).
Interestingly, a few days later Apple finally allowed Valve's Steam Link app in the App Store, after a year of strenuous and behind the scenes tug-of-war.
New MacBook Pros! with fixed keyboards? I'm in the market for one of these babies, but i'll wait to see how "new material" in the keyboards fares. Apple will keep the free-repair program, but won't issue a recall.
WWDC invites are in and I didn't get one. What's up with that? Anyway: June 3rd will probably be an early Christmas day with iOS 13 and macOS 10.15 leaking features left and right, all pointing to widely awaited features.
More from the orchard
Apple will provide battery and performance issues of new updates, at least for UK consumers. The report lacks detail so we don't know what –if anything– will change.
Johny Srouji had an intense meeting with Intel's Venkata Renduchintala, frustrated with the chip company’s work with their modems back in 2017.
Apple's LCD supplier Japan Display has announced its ninth consecutive quarterly net loss, following a decrease in demand from Apple. — LCD screens are in the iPhone XR, best selling phone.
Calculating how many consumers are financing iPhones through Apple plans: not that many.
Growth of installed base of iPhones in the US is slowing down according to CIRP estimates that set the figure at 193 million, around 20 million more than a year ago. All things considered, it looks good and healthy to me.
Toshiba Memory is going to buy back the shares it sold off to Apple and other companies.
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