Apple suppliers experience a decline due to concerns about China and the danger from Huawei
Fears that Apple and its suppliers would suffer from escalating Sino-U.S.
tensions and escalating competition from Huawei were fueled by China's expanding restrictions on iPhone use by government employees.
This led to a sell-off in global IT stocks on Friday.Following rumors that Beijing had just forced some central government officials to stop using iPhones at work, Apple shares fell 6.4% during the previous two days,
wiping $190 billion off its market capitalization.On Friday, a number of Wall Street analysts claimed that the selloff was exaggerated and that any revenue losses for Apple
would probably be minimal given the popularity of the phone in China. Following two days of losses, Apple shares recovered on Friday, rising 1.3%.
challenge from Huawei, a Chinese company that just unveiled the foldable Mate X5 and the Mate 60 Pro+, two new smartphones that attracted notice worldwide for their ability to withstand American sanctions.
Some observers think Huawei's actions could be the first step in the
"national champion" of China's resurgence against Apple, which lost some market share after U.S. sanctions went into effect four years ago.
In response to a disappointing quarter for sales of its flagship product,
Apple is prepared to release a new iPhone on Tuesday.Ivan Lam, an analyst at Counterpoint, said that his forecast for the new products exceeds previous estimation. "We believe Huawei's activity this time was well prepared and not sudden," he added. Before Apple's press conference, it can control
the psychological expectations of the target consumer group.
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