Dan Niles Shorts Apple on Valuation, China Headwinds 9/7/23
TechCheck
CNBC
4.5 • 66 Ratings
🗓️ 7 September 2023
⏱️ 9 minutes
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| 0:00.0 | These overseas headwinds for Apple dragging the stock down. |
| 0:07.0 | Last couple sessions and sparking a broader sell-off. |
| 0:09.6 | Our dear Bosa is watching that in today's Tech Check. |
| 0:11.8 | Hi, D. |
| 0:13.0 | And China, the ever-present apple risk lurking in the background |
| 0:15.8 | until of course it isn't. |
| 0:17.0 | So it's once again front and center, this time putting the company on track |
| 0:20.2 | to lose some $200 billion in market value in just two sessions. Two issues are |
| 0:24.6 | emerging here. I'll break it down for you. One, that report that China is |
| 0:27.8 | restricting the use of iPhones at central government agencies. Tim Cook of course |
| 0:31.3 | has been on this mission to diversify its supply chain to |
| 0:34.8 | India in particular but the company still currently relies on 19% of total |
| 0:38.8 | revenue from China. The fear is that the ban on the government side could expand to state-owned enterprises |
| 0:45.7 | and that could put a real dent in sales because some of China's biggest companies are state-owned. |
| 0:51.3 | The second issue here hitting shares a potential |
| 0:53.8 | resurgence of Huawei. Its latest smartphone being seen as the first significant |
| 0:58.6 | threat to Apple's dominance in the market in years. Huawei you might might remember, it is the giant Chinese national telco equipment company |
| 1:06.1 | that has been at the center of Beijing-Washington tensions a number of times over the years. |
| 1:10.1 | The latest, the US export ban. |
| 1:11.9 | It essentially decimated Huawei's smartphone business |
| 1:14.8 | by restricting its access to Google's Android, |
| 1:17.4 | the operating system which its phones use. |
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