A Growing Number of Chinese consumers are Changing from Apple’s iPhone

Huawei is winning over increasingly Apple fans in China as the raised trade tensions have stoked “nationalist sentiment,” as indicated by the South China Morning Post.

switching from Apple’s iPhone

China’s buyers are progressively favoring their local brands after the U.S. stepped up its action against Huawei, the paper said. The article referred to a couple of anecdotes where people changed to Huawei smartphones from their most favorite iPhones to demonstrate their support for the country and Chinese brands.

“It’s sort of embarrassing to pull an iPhone out of your pocket these days when all the company executives use Huawei,” Sam Li, who works at a state-owned telecom company in Beijing, told the South China Morning Post. He included his company offers representatives a Huawei discount.

The nationalist talk has gotten more intense in China after President Donald Trump blacklisted Huawei, adequately halting its ability to purchase American-made parts and components. Remarks like “support Huawei” and “hang in there” have become more popular on Chinese social media stages and some people said Google decisions to cut ties with Huawei is like “cutting the ground from under one’s foot,” as indicated by the Hong Kong-based newspaper.

Apple, a major player in China, is sitting in the crossfire of the tit-for-tat tariffs between the U.S. and China. Its China business represented for more than 17% of its sales in its fiscal second quarter and the company sells billions of dollar worth of iPhones in China consistently.


Presently the anti-Apple sentiment in China is making more headaches for the tech giant, which is as of now suffering from the slowing iPhone demand. Shares of Apple have tumbled more than 13% in the previous month as trade tensions escalated. The U.S. climbed tariffs on $200 billions worth of Chinese merchandise earlier in May. China struck back by raising duties on $60 billion worth of U.S. imports to as high as 25%.

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Goldman Sachs said Wednesday that if Apple’s items were banned in mainland China, its earnings could drop by 29%.

The exchange worries have provoked many Wall Street analysts to cut their projections for Apple. HSBC scaled down its price target on the tech giant to $174 per share from $180, while Credit Suisse additionally said Apple’s earnings per share would drop by 15 cents per share for every 5% drop in more prominent China sales.