Apple Lossless Audio CODEC (ALAC), is seen as the victim of a boycott by which the Chinese refuse to buy its products, along with those of other Chinese companies, all because of the trade war between the two countries. The analysts came to this conclusion after analyzing the market in China, and they discovered that although the Chinese government did not officially ask for it, the citizens are starting to avoid American products.
Apple is one of the companies most visibly affected by this informal boycott of Chinese citizens, and this is because it is a very important company at the global level. If the government does not recommend avoiding American products, local companies recommend citizens to buy locally manufactured products, i.e. everything that the Americans sell.
Apple is the victim of a Chinese boycott, and the effects can be seen in the decrease in revenue
Apple has lost a lot of money because of the war that Donald Trump is currently waging with China, but there are other companies that are suffering because of this policy. Not only the boycott is a problem for American companies, but also a contraction of the Chinese economy due to the sanctions imposed by the USA, consumers having less money to spend.
According to a survey conducted by our colleagues in equity research, consumers in China and India are showing less interest in upgrading to an iPhone and more interest in upgrading to Xiaomi and Samsung. Apple sales may also suffer from a general redirection of Chinese demand away from US products.
Apple doesn't only suffer in China, but also in India, where it didn't sell much anyway, but that's because Indians are poorer, and iPhone prices are extraordinarily high for them. Apple is a victim of the international policy carried out by the USA, but also of the price policy it has at the moment, and this will not change for the better any time soon.
