Apple is only the latest casualty of the Sino-American tech war
Few events in the tech calendar create as much buzz as the release of the latest iPhone. On September 12th Tim Cook, Apple’s boss, unveiled what he called “truly incredible” new devices. Yet it was an earlier, quieter launch of a rival gadget that left the tech world gobsmacked. In late August, with no forewarning, Huawei showed off the Mate 60 Pro. As the first fully Chinese-made smartphone that can tap into 5G networks, it was an instant hit. The processors inside it were made by SMIC, China’s chipmaking champion. It is exactly this type of technology that America has been trying to stop Huawei and other Chinese companies from getting their hands on.
If being upstaged by a Chinese rival was not enough to sour Apple’s mood, days later news broke that some Chinese government departments and state-owned firms may be banning iPhones. The American giant’s share price fell by 6%, wiping around $200bn from its market value.
A ban’s direct impact on Apple would be minimal. A tiny fraction of China’s 7m or so public servants can afford iPhones, reckons Jefferies, an investment bank. Still, the rumours—and they are still that—signal that not even Apple, whose relations with China have long been cosy, is invulnerable to geopolitics. What is more, China’s targeting of America’s most valuable company, combined with SMIC’s newfound chipmaking prowess, may provoke hawks in Washington to tighten anti-Chinese controls. The Chinese may respond, and so on up the escalation ladder. No wonder investors are spooked.
2023-09-14 06:55:18
Link from www.economist.com
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