Apple's Profit Could Fall 26% if Banned in China

According to a report, Apple's profit is expected to fall by 26 percent, in case China restricts  the US company's sales in the country by 2020.

Cowen Analyst Krish Sankar said to Bloomberg that China's ban on the iPhone will be an exceptional synopsis for how trade wars look like.

"All Apple's products including iPhone, iPad and Mac systems are at risk of experiencing a falling demand as a consequence of Huawei's damage from sales ban," Sankar noted.

[caption id="attachment_53920" align="aligncenter" width="758"] CEO Tim Cook in an Apple manufacturer in China[/caption]

He added that the unfair ban of Huawei could push Chinese consumers away from US products and services in an attempt to support their country's economy. Chinese tech-firm Huawei called on the US to halt 'illegal action' against the company, pressing with a lawsuit against the ban.

Meantime, as demand for iPhone in China has weakened, Citibank cut Apple's target price to $ 205 from $ 220. Apple's iPhone revenue fell 17.33 percent on an annual basis to record $ 31.05 billion in Q1 2019.