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China just took a $300B bite out of Apple. It could be a sign of things to come
- ClassyJacket 3y agoI hate these stupid headlines that are desperate for a pun. Just say the damn thing.
- andrewstuart 3y agoIf this is true, then why would any tech company have anything to do with China?
- ggm 3y agoMany things about international finance are complex, and best understood in arrears many years later. All of the majors have extracted huge profit over decades from an association with China. If there is some rebalancing, then perhaps yes they will say "wasn't worth it" but then again they might not. Transfer pricing meant most of the FAANG paid next to no real tax aside from minium compliance goods and services taxes in Australia, across a long period. Consumers were happy. Government less so. Oil and mining sector royalties are often notional amounts in the future, and highly conditional on the same future as forecast arriving. The day the royalty becomes due, the mine is ghosted into another company and the state is left to remediate the massive environmental damage, is not uncommon. So this is headline clickbait which might have some truth and might not. It depends. There was a temporary drop in share price. Somebody will pick up cheap Apple shares, and profit, The fundamentals of "worth" for a company aren't reflected in a day-by-day shift in share price, lets look again in 3 months time. They made good revenue from China, they will again once the trade war settles down, and in any case the rest of the world wants the product so there is no shortage of market. So what if Samsung sell more units in China for a few years?