'If China shuts down, it's not just Apple that will be affected, all companies can die.'
Apple Inc suffered a loss of 2.63% this morning as news of protests in China dented the confidence of foreign and domestic investors.
Over the weekend there were protests in China's major cities after the government's zero-covid-19 policy failed to curb a surge in cases, even resulting in 10 deaths.
It is further clouded by the insistence of Chinese citizens who want President Xi Jinping to step down, in addition to the confrontation between the population and the authorities.
The series, there is concern among investors regarding the possibility that the world's 2nd largest economy may experience a blockade (lockdown) that will complicate the problem of the global supply chain.
This means that Apple's supplier firm in China, Foxconn, is also affected, impacting the production of iPhone 14 models ahead of the holiday shopping period that begins during Black Friday.
Comment Wedbush Securities notes that production of iPhone products for the latest quarter will decrease between 5% to 10% while KGI Securities analysts forecast 12% or around 10 million units for the period ending December.
JP Morgan analysts added that production challenges in China's main cities will limit operations, further triggering supply and demand problems.
So far, Apple has not issued any follow-up statement in favor of its suppliers in China.
