Apple Earnings Could Be Cut 29% on China Ban, Says Goldman
- China retaliation worries surface after U.S. blacklists Huawei
- Broker cuts Apple PT though takes no view on likelihood of ban
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Apple Inc.’s earnings would take a 29% hit if China were to retaliate against the U.S. with a ban on sales of the iPhone maker’s products, Goldman Sachs estimated.
While Goldman takes no view on the likelihood of a potential ban, such a restriction would represent 100% of estimated Apple earnings exposure to both mainland China and Hong Kong, assuming some offsetting impact from cost savings in sales and marketing, analysts including Rod Hall wrote in a note. The stock fell 0.5% in U.S. pre-market trading.