China’s Apple Ban Timing ‘Interesting’ – Here’s Why

The stock is down over 5% in the last week, with further reports stating that the ban could also be imposed on workers at state-owned companies and government-backed agencies.

Here's what Wall Street analysts have said on the matter:

In a note this week, relayed by The Fly, Citi analyst Atif Malik stayed positive on Apple into its 15 launch event on September 12 and stated he does not see the recent China government iPhone ban having a material impact on iPhone units.

Even so, the analyst, who maintained a Buy rating on the stock, sees the recent news around China and the Huawei Mate 60 launch as a headline risk for AAPL shares, despite his claim that the Mate 60 technology is a few years behind iPhone.

It was also reported that Morgan Stanley analyst Erik Woodring believes Apple's 2-day slide is overdone. While the market is worried that the recent China headlines could evolve into something broader, Morgan Stanley says it is “unlikely.”

However, the firm notes that the real risk is China potentially being on the path to becoming more nationalistic, which Woodring says could place over $30 billion of Apple's operating profit at risk should the country's government decide to limit Apple's access to the Chinese market. Even so, the analyst contends that worries regarding iPhone curbs by the Chinese government aren't necessarily new.

BofA stated that the timing of the potential ban is “interesting” as it coincides with the recent launch and availability of the new smartphone made by Huawei as “a real alternative to an iPhone.”

Regardless, BofA recognises that it remains unclear how widespread the potential banning order would be. The investment bank estimates a potential 5 million to 10 million unit headwind if such a ban were to go through and be enforced.

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