20.05.2020 Apple Daily Analysis

20.05.2020 Apple Daily Analysis

Apple today is trading at $313.14, it is trading low with $1.82 mainly because Apple is likely to face backlash from the Chinese government over a new U.S. rule designed to target Huawei, experts told CNBC, despite threats from state-backed media. The US  moved to cut off chip supplies to Huawei with a rule that requires foreign firms using American software or equipment to manufacture chips to sell to the Chinese giant, to get the license. However according to state-backed publication Global Times China is ready to take "countermeasures," and these measures are said to include putting some companies on a so-called 'unreliable entity list', it is unclear what this list entails as it has not been published yet; but it was something floated by China last year after Huawei was thrown on a US blacklist known as Entity list. According to Global Times, other measures could include "imposing restrictions on or launching investigations into U.S. companies like Qualcomm, Cisco, and Apple according to Chinese laws and regulations like Cybersecurity Review Measures and Anti-monopoly Law. Nonetheless, it is of importance to note that the iPhone maker has a good relationship with Beijing and indirectly via its manufacturing partners employs hundreds of thousands of workers in China, factors that could dissuade authorities from taking action against the company.