According to BBC, an Apple bull told it that following the arrest of the Meng Wanzhou who is the CFO of Huawei, Apple Inc must feel that it has a bulls-eye on its back.
According to Dan Ives who serves Wedbush which is an investment firm, the arrest of the CFO of the tech giant firm in Canada on the command of the United States will act as the straw that will break the back of the camel.
This is because; this act by the United States will strike the already existing rivalry between the two countries which are at the moment on a truce period. The strike rivalry in turn could affect the sales of Apple in China.
Over the Huawei incident, China has been at odds since long with the United States. The company recently surpassed Apple so as to become the second largest phone manufacturer in the world after Samsung.
In the market of the United States, Huawei is locked up effectively. Washington has even allied up so to limit the growth of Huawei in a similar manner.
Also, Australia as well as New Zealand have also blocked Huawei so that the company could not expand its 5G network which is recently coming.
According to Ives, the arrest of the CFO of Huawei might provoke China to retaliate. Ives stated to BBC that the last thing which the investors wanted to see was this new of the arrest of the CFO of Huawei.
This incident comes at a potentially precarious time for Apple Inc specifically in China.
The analysts at the Goldman Sachs stated in November that the company must see this incident as the risk of demand in China from the month of December and beyond.
Source: BusinessInsider, BBC
