Operation Disclosure | By David K. Lifschultz, Guest Writer August 12, 2020 THE US DESTRUCTION OF APPLE BEGINS As to Apple, see We Ch...
Operation Disclosure | By David K. Lifschultz, Guest Writer
August 12, 2020
THE US DESTRUCTION OF APPLE BEGINS
As to Apple, see We Chat ban below where Apple can expect to lose 30% of global sales.
What is the US going to do when Boeing loses the Chinese market? That may be the end of Boeing. What happens when General Motors is thrown out of China. More than half of GM sales are in China or 4 million vehicle sales to 7.7 worldwide. Huawei will have 7G before we have 5G.
It will be interesting to see whether the U.S. government will be able to effectively block U.S. companies like Intel, Qualcomm, Xilinx and Nvidia from continuing to cooperate with Chinese companies. 40% of their sales are to the Chinese market and there is some question whether they will survive if they lose this market.
It is worthwhile, however, considering some of the hurdles that the US government may face in their effort to destroy Huawei. This campaign may end up hurting the U.S. IT industry, and its broader economy, as well as key partners of the U.S. Supply chains may be disrupted and jobs destroyed on a significant scale in China, but also in the US, and customers would have less choice.
See footnote one for the massive defense strategy of Huawei and China.
The United States is committing hare-kari (suicide). 4,000 cities burning relatively unopposed out of fear the army will not shoot their low caste comrades--that means the end of the United States if this turns out; most of its industries destroyed; and now what is left is facing total ruin. A four billion dollar budget deficit on a 7 billion dollar budget. 400 years of Federal Reserve Credit created in three months. An economy shut down over an influenza where more than half the deaths are padded from other causes.
This is worse than Weimar Germany. Weimar Germany could blame reparations> We can blame the influenza flu?
Footnote one:
Huawei’s multiple defense positions
It would seem to be unrealistic to expect that a company with a street-fighter mentality like Huawei will simply sit and wait until the U.S. Commerce Department will cut off its supplies of leading-edge semiconductors from U.S. industry leaders.
In fact, Huawei appears to have prepared multiple defense positions:
a. In its quest to become the world’s largest smartphone vendor, Huawei has asked its Taiwan supply chain partners (IC packaging, testing, chip probing, and optical components) to relocate their operations to China, although Taiwan’s regulatory restrictions may make this quite difficult.
b. Huawei is one of the three largest foundry service customers of TSMC. It wouldn’t be easy for TSMC to lose them.
c. As for Huawei’s recently announced Arm-based CPU Kunpeng 920, this is important as it seems to indicate a fairly close relationship with Softbank’s Arm. Hi-Silicon has designed the CPU for Kunpeng 920, but that CPU appears to be slower than the Arm Cortex-A76 or Marvell ThunderX2. But it seems that for the China server market that performance is considered to be sufficient.
More important for Huawei’s survival may be that Arm is working with Huawei and several others to build a server ecosystem around Arm under the Neoverse brand. Huawei can be an effective representative of this effort in China.
Even more than the ZTE shock before, the campaign against Huawei will likely force China to accelerate its drive for self-reliance. By strengthening the hardliners in China’s leadership, U.S. restrictions on technology exports may also strengthen the current drive towards re-centralization of political control and the spread of mass surveillance. In fact, in January President XI announced a new 15-year Science and Technology Innovation Plan to speed up its indigenous innovation campaign.
As for the semiconductor industry, China continues to advance its foundry industry with huge investments in new fabs and technology, despite trade tensions and a slowdown in the IC market.
China has the most fab projects in the world, with 30 new facilities or lines in construction or on the drawing board, according to data from SEMI’s World Fab Forecast Report. Of those, 13 fabs are targeted for the foundry market, according to SEMI. The remaining facilities are geared toward LEDs, memory and other technologies.
In the end, technology export restrictions imposed by the U.S. government on Huawei and other Chinese companies may disrupt China’s access to key technologies, at least for some time, and it may disentangle the close economic interdependence between the US and Chinese technology sectors.
But technology export restrictions are a crude and often self-destructive policy instrument. Collateral damage is guaranteed, not only to U.S. industry but also to the IT industry in America’s partner countries. Most importantly, such restrictions on the free flow of knowledge, technology and brains will stifle innovation in an industry that is unrivaled in its degree of globalization.
Who will be damaged?
The losses are already significant in companies with heavy exposure to China, due to uncertainty and preventive adjustments in contracts and location decisions. Specifically for Huawei, the following U.S. lead suppliers will badly suffer, i.e. Flex, Broadcom, Qualcomm, Seagate, Micron, Qorvo, Intel, and of course the suppliers of design tools and production equipment.
WeChat ban ‘could cost Apple 30% of global sales’
Taiwanese analyst warns that Chinese customers will shun the iPhone if the app is not available
By DAVID P. GOLDMAN AUGUST 11, 2020
An Apple store in Shanghai. China accounts for 30% of iPhone sales and 15% of Apple’s total revenue as of the second quarter of 2020. Photo: AFP / Hector Retamal
A widely-followed Taiwanese stock analyst warns that Apple’s smartphone sales will fall by almost a third if the American giant removes WeChat from its app store under a US government directive.
Ming-Chi Kuo, an analyst with TFI Securities, wrote in an August 10 letter to clients that Chinese customers would shun the iPhone if the WeChat app were not available. China accounts for 30% of iPhone sales and 15% of Apple’s total revenue as of the second quarter of 2020. Kuo’s remarks were first reported by MacRumors, 9to5Mac and AppleInsider.
Kuo follows Apple for TFI Securities, a division of the Taiwanese firm China Development Financial, a banking and brokerage firm with annual revenues of almost US$7 billion. He warned clients in his Monday newsletter: “Because WeChat has become a daily necessity in China, integrating functions such as messaging, payment, e-commerce, social networking, news reading, and productivity, if this is the case, we believe that Apple’s hardware product shipments in the Chinese market will decline significantly. We estimate that the annual iPhone shipments will be revised down by 25-30%, and the annual shipments of other Apple hardware devices, including AirPods, iPad, Apple Watch and Mac, will be revised down by 15–25%.”
Kuo advised TFI’s customers to sell Apple stock along with companies in Apple’s supply chain, including LG Innotek and Genius Electronic Optical.
Apple stock was trading at US$455 at the New York opening before wire services reported Kuo’s recommendation. The stock fell to $442 as of 11 am, a decline of 2.6%.
WeChat’s parent company Tencent (HK 700) lost nearly 10% of its market capitalization on Friday and Monday in Hong Kong trading after President Donald Trump issued an executive order Thursday prohibiting all US transactions via WeChat. It isn’t yet clear whether the order will require Apple to remove the popular application from its platform in China, and Ming-Chi Kuo explained that his projection of a 30% sales drop was a worst-case scenario.
Apple depends heavily on foreign sales, while Tencent makes 96% of its revenues in Mainland China. WeChat has a relatively small following in the United States, mainly among Americans who communicate regularly with China. The steep fall in the company’s stock doesn’t appear justified by fundamentals. Under a worst-case scenario, the impact of the US ban on Tencent’s revenues would be negligible.
Uwe Parpart and I recommended buying Tencent on the dip in our August 8 Global Value Strategist.
In other news, Tencent this week proposed to merge two Chinese game streaming companies, DouYu International Holdings and Huya, Inc, to create a giant firm with a market value in excess of $10 billion. Tencent presently owns 37% of Huya and 38% of DouYu. China’s game streaming market has $3.4 billion a year in annual revenues.
David Lifschultz
THE LIFSCHULTZ ORGANIZATION
DAVID@LIFSCHULTZORGANIZATION.COM
______________________________________________________
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The subject of your email entry should be: "Entry Post | (Title of your post) | Operation Disclosure"
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If you wish to receive the daily Operation Disclosure Newsletter, you can subscribe here.
______________________________________________________
Our mission at Operation Disclosure is to bring you important news events and raw intel from various sources focused on exposing the Deep State/Cabal and their downfall. We are also focused on disclosing our lost ancient origins and extraterrestrial contact.
Disclaimer: All articles, videos, and images posted on Operation Disclosure were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes. All statements, claims, views and opinions that appear on this site are always presented as unverified and should be discerned by the reader. We do not endorse any opinions expressed on this website and we do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content posted on this website.
Copyright © 2020 Operation Disclosure
August 12, 2020
THE US DESTRUCTION OF APPLE BEGINS
As to Apple, see We Chat ban below where Apple can expect to lose 30% of global sales.
What is the US going to do when Boeing loses the Chinese market? That may be the end of Boeing. What happens when General Motors is thrown out of China. More than half of GM sales are in China or 4 million vehicle sales to 7.7 worldwide. Huawei will have 7G before we have 5G.
It will be interesting to see whether the U.S. government will be able to effectively block U.S. companies like Intel, Qualcomm, Xilinx and Nvidia from continuing to cooperate with Chinese companies. 40% of their sales are to the Chinese market and there is some question whether they will survive if they lose this market.
It is worthwhile, however, considering some of the hurdles that the US government may face in their effort to destroy Huawei. This campaign may end up hurting the U.S. IT industry, and its broader economy, as well as key partners of the U.S. Supply chains may be disrupted and jobs destroyed on a significant scale in China, but also in the US, and customers would have less choice.
See footnote one for the massive defense strategy of Huawei and China.
The United States is committing hare-kari (suicide). 4,000 cities burning relatively unopposed out of fear the army will not shoot their low caste comrades--that means the end of the United States if this turns out; most of its industries destroyed; and now what is left is facing total ruin. A four billion dollar budget deficit on a 7 billion dollar budget. 400 years of Federal Reserve Credit created in three months. An economy shut down over an influenza where more than half the deaths are padded from other causes.
This is worse than Weimar Germany. Weimar Germany could blame reparations> We can blame the influenza flu?
Footnote one:
Huawei’s multiple defense positions
It would seem to be unrealistic to expect that a company with a street-fighter mentality like Huawei will simply sit and wait until the U.S. Commerce Department will cut off its supplies of leading-edge semiconductors from U.S. industry leaders.
In fact, Huawei appears to have prepared multiple defense positions:
a. In its quest to become the world’s largest smartphone vendor, Huawei has asked its Taiwan supply chain partners (IC packaging, testing, chip probing, and optical components) to relocate their operations to China, although Taiwan’s regulatory restrictions may make this quite difficult.
b. Huawei is one of the three largest foundry service customers of TSMC. It wouldn’t be easy for TSMC to lose them.
c. As for Huawei’s recently announced Arm-based CPU Kunpeng 920, this is important as it seems to indicate a fairly close relationship with Softbank’s Arm. Hi-Silicon has designed the CPU for Kunpeng 920, but that CPU appears to be slower than the Arm Cortex-A76 or Marvell ThunderX2. But it seems that for the China server market that performance is considered to be sufficient.
More important for Huawei’s survival may be that Arm is working with Huawei and several others to build a server ecosystem around Arm under the Neoverse brand. Huawei can be an effective representative of this effort in China.
Even more than the ZTE shock before, the campaign against Huawei will likely force China to accelerate its drive for self-reliance. By strengthening the hardliners in China’s leadership, U.S. restrictions on technology exports may also strengthen the current drive towards re-centralization of political control and the spread of mass surveillance. In fact, in January President XI announced a new 15-year Science and Technology Innovation Plan to speed up its indigenous innovation campaign.
As for the semiconductor industry, China continues to advance its foundry industry with huge investments in new fabs and technology, despite trade tensions and a slowdown in the IC market.
China has the most fab projects in the world, with 30 new facilities or lines in construction or on the drawing board, according to data from SEMI’s World Fab Forecast Report. Of those, 13 fabs are targeted for the foundry market, according to SEMI. The remaining facilities are geared toward LEDs, memory and other technologies.
In the end, technology export restrictions imposed by the U.S. government on Huawei and other Chinese companies may disrupt China’s access to key technologies, at least for some time, and it may disentangle the close economic interdependence between the US and Chinese technology sectors.
But technology export restrictions are a crude and often self-destructive policy instrument. Collateral damage is guaranteed, not only to U.S. industry but also to the IT industry in America’s partner countries. Most importantly, such restrictions on the free flow of knowledge, technology and brains will stifle innovation in an industry that is unrivaled in its degree of globalization.
Who will be damaged?
The losses are already significant in companies with heavy exposure to China, due to uncertainty and preventive adjustments in contracts and location decisions. Specifically for Huawei, the following U.S. lead suppliers will badly suffer, i.e. Flex, Broadcom, Qualcomm, Seagate, Micron, Qorvo, Intel, and of course the suppliers of design tools and production equipment.
WeChat ban ‘could cost Apple 30% of global sales’
Taiwanese analyst warns that Chinese customers will shun the iPhone if the app is not available
By DAVID P. GOLDMAN AUGUST 11, 2020
An Apple store in Shanghai. China accounts for 30% of iPhone sales and 15% of Apple’s total revenue as of the second quarter of 2020. Photo: AFP / Hector Retamal
A widely-followed Taiwanese stock analyst warns that Apple’s smartphone sales will fall by almost a third if the American giant removes WeChat from its app store under a US government directive.
Ming-Chi Kuo, an analyst with TFI Securities, wrote in an August 10 letter to clients that Chinese customers would shun the iPhone if the WeChat app were not available. China accounts for 30% of iPhone sales and 15% of Apple’s total revenue as of the second quarter of 2020. Kuo’s remarks were first reported by MacRumors, 9to5Mac and AppleInsider.
Kuo follows Apple for TFI Securities, a division of the Taiwanese firm China Development Financial, a banking and brokerage firm with annual revenues of almost US$7 billion. He warned clients in his Monday newsletter: “Because WeChat has become a daily necessity in China, integrating functions such as messaging, payment, e-commerce, social networking, news reading, and productivity, if this is the case, we believe that Apple’s hardware product shipments in the Chinese market will decline significantly. We estimate that the annual iPhone shipments will be revised down by 25-30%, and the annual shipments of other Apple hardware devices, including AirPods, iPad, Apple Watch and Mac, will be revised down by 15–25%.”
Kuo advised TFI’s customers to sell Apple stock along with companies in Apple’s supply chain, including LG Innotek and Genius Electronic Optical.
Apple stock was trading at US$455 at the New York opening before wire services reported Kuo’s recommendation. The stock fell to $442 as of 11 am, a decline of 2.6%.
WeChat’s parent company Tencent (HK 700) lost nearly 10% of its market capitalization on Friday and Monday in Hong Kong trading after President Donald Trump issued an executive order Thursday prohibiting all US transactions via WeChat. It isn’t yet clear whether the order will require Apple to remove the popular application from its platform in China, and Ming-Chi Kuo explained that his projection of a 30% sales drop was a worst-case scenario.
Apple depends heavily on foreign sales, while Tencent makes 96% of its revenues in Mainland China. WeChat has a relatively small following in the United States, mainly among Americans who communicate regularly with China. The steep fall in the company’s stock doesn’t appear justified by fundamentals. Under a worst-case scenario, the impact of the US ban on Tencent’s revenues would be negligible.
Uwe Parpart and I recommended buying Tencent on the dip in our August 8 Global Value Strategist.
In other news, Tencent this week proposed to merge two Chinese game streaming companies, DouYu International Holdings and Huya, Inc, to create a giant firm with a market value in excess of $10 billion. Tencent presently owns 37% of Huya and 38% of DouYu. China’s game streaming market has $3.4 billion a year in annual revenues.
David Lifschultz
THE LIFSCHULTZ ORGANIZATION
DAVID@LIFSCHULTZORGANIZATION.COM
______________________________________________________
Guest Posting
If you wish to write and/or publish an article on Operation Disclosure all you need to do is send your entry to UniversalOm432Hz@gmail.com applying these following rules.
The subject of your email entry should be: "Entry Post | (Title of your post) | Operation Disclosure"
- Must be in text format
- Proper Grammar
- No foul language
- Your signature/name/username at the top
______________________________________________________
If you wish to receive the daily Operation Disclosure Newsletter, you can subscribe here.
______________________________________________________
Our mission at Operation Disclosure is to bring you important news events and raw intel from various sources focused on exposing the Deep State/Cabal and their downfall. We are also focused on disclosing our lost ancient origins and extraterrestrial contact.
Disclaimer: All articles, videos, and images posted on Operation Disclosure were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes. All statements, claims, views and opinions that appear on this site are always presented as unverified and should be discerned by the reader. We do not endorse any opinions expressed on this website and we do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content posted on this website.
Copyright © 2020 Operation Disclosure
