The growing anti-Americanism of China may cause a significant
Huawei was close to becoming the leader in the smartphone market – its popularity surpassed Apple’s and only the Korean rival, Samsung, remained to be “beaten”. Unfortunately, the effect of the political tension was obvious – the company is currently experiencing significant declines in the sales of its phones, although before the ban, only Huawei defended itself against the overall downward trend in smartphone sales. What besides the war – other factors Let’s leave the trade war aside for a moment – the tension between the US and China is not the only political factor that can influence trends in consumer choices. And Huawei is not the only brand among electronics manufacturers.
Now let’s look at the example of its direct
Competitor: Apple. Apple’s business success depends largely on low production costs, which is possible thanks to its outsourcing to China. There are a number of risk factors here: 1. decrease in sales of Apple brand products in the Middle Kingdom, e.g. in favor of increasing the share of domestic brands in the electronics market. 2. There is increasing database pressure inside the US to create “American jobs”, i. to abandon outsourcing, which was supported by Trump’s narrative already during the election campaign. Of course, the transfer of production may. Increase the prices of Apple products (due to the aforementioned dependence of. The brand on cheap production), and thus cause sales declines.
The pressure to return jobs
The countries of establishment is now noticeable. In most countries that have taken advantage of the opportunity offered by globalization, i. moving production abroad to reduce its costs. 3. Another social phenomenon noticeable e.g. In the USA America Phone Number there is a high level of dissatisfaction with the existence of significant differences. In income and living standards, i. income inequality. This, in turn, causes an increasing pressure (also international) to regulate tax issues. Which are unclear in the case of large companies, tech giants.