China is the biggest risk for Apple: Market analyst

Channel: Fox Business
Published: 6 hours ago

Description
Wedbush Managing Director of Equity Research Dan Ives on the potential impact of the antitrust probe and China trade tensions on big tech. FOX Business Network (FBN) is a financial news channel delivering real-time information across all platforms that impact both Main Street and Wall Street. H...



Transcript
All right, that's what some cook hopes that the government busy looking at it and a host of other high-tech heavyweights, including google and facebook and amazon it sort of unscathed in this process. That might be easier said than done to tech, analyst and ives on what happens now you know dan. What'S interesting, is you still have congress and democrats and republicans fairly united on this, tha ...
these guys have to be looked at apple included where's, this going look! It'S really belt waivers, big tech and i think right now, there's a bright spot. Why not just on apple but google as well as facebook. You know i continue to think it's more noise and reality interms of what's gon na happen here, but nonetheless this is a big risk for investors, especially when it comes to facebook and google, but apple being brought into it. This is exactly what the street didn't want to hear, especially the us-china battle going on yeah. You mentioned that you was trying to battle. That would, at least to me, be the more immediate concern for apple. I know tim cook has gone out of his way to say that the chinese have not targeted his company, but we do know that the chinese are fingering, fedex and ford and that it's just a matter of time before they go away after the apples and the Nikes and some someof these companies that an apple exposure there does that play into your thoughts on apple yeah right now. The biggest risk for apple and cook is china, and then that's why right now remembers from the demand, as well as a supply 20 %. I phones coming out of china over the next 12 to 18 months from a demand perspective, and then you have foxconn that continues to be the main production facilities. That'S why they've really become the poster child for us-china trade wars.

That'S why i cooked preemptively he's trying to do some pr around this, but nonetheless this continues to be a white-knuckle period for apple specifically on the china situation. You know dan, i alwayswonder. Whether apple is in more of a position of strength regarding china. That is generally credited. I mean i'm on china and you know all those phones are a good chunk of them are manufactured in my country and employing a lot of my people. I'M not the eager to get too tough on. What'S been a cash cow. Am i look, dad's really been our thesis, you employ 1. 4 million chinese as apple does and cook, and he's been basically a pseudo ambassador between us and china and that's why the last thing china's to shoot themselves in the foot here, given how strategic apple is within China not just as an employer but just strategically as acompany. So that's why i do believe right now, it's more barks worse than the bite in terms of china and apple, but you see the stocks reacting. This is a proved me situation for apple and cook and right now they really want to see if there's any demand degradation so far. We are not seeing that in china.

You know it's weird, as all these companies apple wasn't among them that moved their operations to mexico to get over whatever exposure they had to china, and now it's like a double win and we'll see how that goes dan. Thank you. So much than seeing you.


Watch Next

Loading...