The Chinese market makes up roughly 20% of Apple’s global profits, and that figure may very well tank come 2019 due to the scandal surrounding Huawei.
Huawei CFO Meng Wanzhou was recently arrested for suspicion of fraud and for allegedly breaking U.S. sanctions to continue doing business in Iran. She was arrested by Canadian authorities and America demanded extradition to the United States. Wanzhou successfully made bail, but the Chinese are far from happy about the incident.
Chinese citizens, as well as entire Chinese companies, have begun boycotting American and Canadian products, particularly Apple products. More specifically, iPhones. Apple is a direct competitor with Huawei, and the last thing the Chinese will do right now is support an international competitor when the CFO of a home-grown brand is currently under what they believe to be unjustified scrutiny.
Many videos have surfaced on the internet of Chinese citizens breaking and or setting their iPhones aflame and purchasing Huawei smartphones. Some companies are offering their employees a bonus for switching to Huawei products, and promising punishment for anyone who continues to support Apple and/or own an iPhone.
At this rate, Apple may be completely vilified in China before 2019 even hits, and if that happens, their foothold in the Chinese market may be impossible to gain back.
