Apple Iphones Ban in China?!

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Well we got some huge news out of china today in regards to apple and i want to break this down fully for you guys here today a lot of people are confused on why this happened a lot of people are thinking are all apple products banned in china are all iphone units banned in china we’re going to get into all this why china made this move i want to talk about what

This means in regards to the qualcomm apple relationship i want to talk about what it means to other semiconductor companies out there we’re going to go through this fully today hit a thumbs up if you enjoy this video today guys so first off as far as apple stock today it was dipping pretty biggest down to about 163 what so louis it’s been quite a while but it did

Bounce back to about 169 by the close of today so maybe that you know part of that was because the markets were being really weak maybe part of that was because some more was understood about this whole situation alright now in order to really understand what is going on there you’ve got to go back to another situation that has nothing really to do with apple but

This is really affecting apple okay so just a few days ago china warned the canadian ambassador that have main wang zhu the chief financial officer of the telecom tech giant whole huawei is not released there will be grave consequences according to cbs chinese officials told the ambassador that mains detention while traveling through canada on suspicion of violating

Us trade embargoes on iran which could net her a 30-year sentence if she has extra day to the us and convicted is unreasonable and unconscionable and vile in nature okay this is a massive massive deal going on going on we know obviously there’s a trade situation between the united states and china that’s already gotten really ugly but then this this individual the

Cfo of hawawa huawei’s a you know a chinese company that’s a massive company one of their kind of almost like the apple of china is what hawawa is okay and this this woman this to the cfo is the daughter of the the gentleman who started the company so it’d almost be like steve jobs daughter getting arrested in china back in the day or something like that like this

Is absolute crazy deal china wants her back and so this is just a massive massive deal and so there’s just gotten ugly okay so it also a growing number companies across china have now announced new policies requiring the exclusive use of halawa products and in some cases penalizing employees who purchase iphones in what appears to be a growing domestic movement to

Support chinese tech giant after the rest of one of its top executives in canada so this has just gotten into it would be a really really ugly situation apple’s been like thrown in the spot like this has nothing to do with apple but because apple is the darling of the united states and what apple does a ton of business out in china all of a sudden this apples just

Gotten dragged into this massive situation so if you’re looking for something that you know the chinese would want to do a company that you specifically want to hurt they specifically want to hurt apple and i’ll explain in a minute why that’s actually actually a really bad move for china because this is this is a really bad move for china okay so apple was ordered

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By the chinese court to stop selling older iphone models after finding the company infringed on two patents held by qualcomm casting uncertainty over apples business in the critical market apple said it’s full portfolio of iphones in china remain on sale and it plans to appeal the court’s decision qualcomm said the intermediate people’s court of china found apple

Had infringed on two patents one related to the photo editing and another for swiping on a touchscreen device all right so if you guys didn’t already know qualcomm and apple have been in a massive legal battle for many many years qualcomm is a huge semiconductor company they used to get a ton of business from apple one of the biggest semiconductor companies in all

The world they’ve benefited from the huge mobile wave and so they’ve been in a legal battle for years and years and then all of a sudden you know what the hallway situation that happens and then all sudden you have china make a decision like this oh now we’re gonna ban some models of iphones now for one it’s not any of the newest iphones they’re talking about the

Previous generation of iphones which iphone 10 isn’t even on sale anymore so that one’s pretty much you know non-existent but they’re mainly it’s kind of talking about like iphone 8 and maybe even – iphone 7 which could be ones that sell decently still in china especially iphone 8 because a cheaper phone that you know more chinese people could afford versus the

Thousand dollar or $1200 phone okay so apple’s gotten dragged in this mess in and you have the the chinese court obviously make a decision like this at a very particular time like why wasn’t this decision made a long time ago why could it be made in the future while sand right now is a decision like this made right now this is coming out of apple okay they say

Quote comes effort to ban our products is another desperate move by a companies who illegal practices are under investigation by regulators around the world apple said in a statement earlier monday all iphone models remain available for our customers in china qualcomm is asserting three patents that have never been raised before including one of which has already

Been invalidated we will pursue our legal options through the courts apple claims that the patents in question do not cover the company’s latest operating system that comes installed on new iphones they’re mainly talking about i it was ios 11 okay general counsel for qualcomm don rosenberg said in a statement monday that the orders aren’t specific to the operating

System installed on the phones okay this is a this is a big big deal okay so what does this mean for apple what does this mean for qualcomm well first off for apple it means that their iphones should maybe still be available for sale it’s a real hairy situation right now or and it looks like even if iphones were banned some of the models it would not be the latest

Models in china it would be the previous models okay if they were actually you know china was really to crack down on this which if honestly huawei cfo is not released or something china may enforce this very tough and say hey get all iphone models that are anything but the very newest ones off the market if you know it’s just china trying to use leverage that’s

The first point china wants to hurt apple for leverage in this huawei situation apple is so important the united states it’s such a you know the company that’s kind of the guiding light they bring in so much profits they pay so much in taxes they have so many employees all those type of things okay so anytime apple’s hurt it hurts the overall stock market it hurts

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Pretty much everything across the board so china wants to use this as leverage number two qualcomm and apple may never ever do business again it looked like maybe they could be getting back together or they had a potential to get back together this situation has gotten so ugly now that i doubt qualcomm and apple will ever do business together and if they do it’s

Gonna be like 10 years plus from now any of the current management teams of apple i doubt we’ll ever want to do business with qualcomm you don’t go you know pissing off your you know one of the biggest tech companies in all the world if not the biggest tech company and a company that uses very premium products that you can get a lot of money in these devices apple

Only sells like at the high end right so all the semiconductors that actually go into iphones are usually very high-dollar type semiconductors right and this situation has gotten so ugly now that i cannot foresee a situation where qualcomm and apple do business together at least for many many many many years into the future i just don’t think there’s it’s at all

Realistic these companies have it’s just gotten so ugly now that i just don’t see it okay number three qualcomm thinks they are being smart but really they’re being dumb in the situation so qualcomm thinks they’re they’re being smart and they’re trying to outsmart apple and whatnot this is just a bad bad look for qualcomm okay one you’re you’re pretty much making

The bigger than you know one of the biggest tech companies in the world never want to do business with you again okay that’s obviously a very negative thing but also with you going back and forth with a huge tech company like this you know what all the other tech companies are looking at it they might you know act like they’re cheering for you oh yeah fight those

Apple you know what really they’re thinking behind cual comes back they’re like wait tell qualcomm tries to do something like this this to us measure if we got in a legal battle with qualcomm it’s just a negative thing out there that a lot of big tech companies are not gonna trust qualcomm and are always gonna have this in the back of their mind like wow if our

Relationship goes apple or bad maybe we’re gonna be in an apple qualcomm situation where we got a ton of legal you know cost in there and whatnot and this thing’s gonna go really south so i think qualcomm thinks they’re being smart i think they’re they’re not making the best decision for their long-term future all right number four is this is good news for all

Qualcomm competitors let me explain that and then we’ll get into why this is not the best move for china okay but this is a good news for all qualcomm competitors because here’s the thing if you’re a qualcomm competitor no matter what space you compete in pretty much as far as apple go there there you know qual comes an unrealistic option for them going forward

I highly doubt apples ever gonna want to use them again and if they do is gonna be so many years from now it’s not even funny okay so if you’re you know quote comes a big competitor because they have so many chips and so many different things so if you’re looking at and you’re buying into a semiconductor company you just realize that you got like one big competitor

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Out there now out of there now because apple is pretty much not even looking like they want to ever do business we call qualcomm again so you just got a big competitor out of there right if i look at a company like ione cirrus logic they compete in some same space as qualcomm okay they sell some similar products smart codecs and some amps and things like that now

That quote comes an unrealistic option it makes one less competitor for cirrus logic which gives them more pricing power against apple right if you have a million different companies doing the same thing or not a million but just you know three or four it makes europe your pricing advantage less and less because they can go to somebody else but when you have one of

The biggest companies out there you know out-of-the-way austin that you know is very very good for you and qualcomm competes with a lot of companies in the semiconductor space none of the best move for china in my opinion okay if we look at a china gets a lot of employees of china or our direct employees really because of apple okay if we think about foxconn and

Pegatron some of those companies out in trying to actually assemble iphones massive massive amounts of employees or because of apple okay so if you take apple out of the market or you you’re hurting apple sales in china that’s less employees that are getting less hours at some of those massive factories all right that’s just one part you have a ton of companies that

Make a lot of money that are chinese companies that are chinese businesses that make a lot of money from apps and in app stores and things like that on apple devices if you take that away right we know the spend on an apple device is much much heavier than an android device you take that away then also you’re hurting your own businesses so in my opinion at least

In china this isn’t the best move to really aggressively go against apple because apple you know indirectly or directly is responsible for mass amounts of chinese jobs over there so if you’re hurting apple you’re kind of hurting yourself at the same time so we’ll see all this shakes out but i just want to be clear it does not mean all iphone models are banned as

Of right now all iphones are still available on the market but yeah you know if this this huawei situation gets worse she’s extradited to us maybe it’s a lengthy jail sentence maybe china could go ahead and crack down say you know what anything that’s other than your most current iphones they’re banned for now or something like that that’s always a possibility

And it’s a risk for apple stock and it’s a risk for the semiconductor stocks that are it would involve with apple as well we’ll see how all this plays out over time i don’t think it’s i think it’s a bad situation for almost everybody across the board specifically qualcomm the most also a bad situation for china and it’s a bad situation for apple it’s it’s almost

Like no one’s really winning in the situation i’ll be completely honest guys anyways i want to hear what your opinion is down there in that comment section as always hit thumbs up if you enjoy my videos each day thank you for watching and have a great day

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Apple Iphones Ban in China?! By Financial Education

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