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And so it starts. Economic collapse will prompt the dictatorship in China to - Increase anti-foreign rhetorics in media. Don't like it, Microsoft? tough -
by sharetea 11y ago
And so it starts. Economic collapse will prompt the dictatorship in China to
- Increase anti-foreign rhetorics in media. Don't like it, Microsoft? tough
- Ban Foreign services. Don't like it, Uber? tough
- Devalue Yuan by 50%. Don't like it, Apple? tough
- Nationalize foreign assets. Don't like it, Ford? tough
- PakG1 11y ago- Devalue Yuan by 50%. Don't like it, Apple? tough Actually, I think Apple would love that. Decreases their manufacturing costs. :)
- dmoy 11y agoPotentially 50% decrease in sales in their 2nd largest market though? That sounds really rough...
- mahyarm 11y agoThey are already fairly luxury priced, so a price doubling wouldn't be as big of a sales depressor as you would think. And many other things would go up in price with a depressed currency in general.
- danmaz74 11y ago> Devalue Yuan by 50%. Don't like it, Apple? tough Why wouldn't Apple like this? Their manufacturing costs would become much lower, and they would rack up even more billions in profits.
- restalis 11y agoHe somehow assumed that choosing the Apple products have something to do with their price affordability.
- jimbokun 11y agoApple is looking to China for further sales growth. Fewer Chinese buying iPhones is probably a bigger problem for them than higher manufacturing costs. Tim Cook has already made a big deal about "currency headwinds" to explain Apple's slowing revenue growth.
- phil21 11y agoWhy would they care? They are selling a Chinese made product to the Chinese. Maybe not as profitable due to exchange arbitrage, but still profitable since the costs go down exactly as much as the retail price does. Engineering for the Chinese market already exists due to all the other markets, so it's essentially money left on the table if they don't.
- mc32 11y agoI don't think they'd go that far. They're mainly interested in controlling information. Nationalization, that would only accelerate the decline of the economy by spooking foreign companies who would soon high tail it leaving behind tons of idle machinery and idle workers, something the PLA would rather avoid.
- restalis 11y agoPLA is People's Liberation Army, I don't think you were referring to them because socio-economics is not really their thing.
- mc32 11y agoThey are ultimate in charge of handling unrest, so while the CCP is the face of the government, ultimately its power and control come from the PLA. When the "incident" in tian an men occurred, it was the PLA who had to go in, they are rather loathe to have to go mop up again.
- jimbokun 11y agoI think this decision will accelerate the spooking of foreign companies. Need to take a long hard look at whether your industry is one where China will want foreign investment over the long term.