Apple will be in a tight spot. The Greater China region (including Taiwan and Hong Kong) is of prime importance to the company.
Just five years ago, the region accounted for less than 10% of Apple’s revenues. Now it accounts for 25% of its revenues. And based on the current growth path, the Greater China region will surpass the Americas as Apple’s largest region by 2018.
I’m sure Apple will politely tell the Chinese no. And guess what? China will likely tell Apple to take a hike. That market will be closed to the company.
Apple’s iPhone has already faced a struggle there. Chinese smartphone makers, including Xiaomi and Huawei, are real up-and-comers and will be vying for global market share in a few short years.
Now Apple could be shut out of its biggest and most lucrative market in the years ahead. Besides India, there are no more big markets left. And India, with its bureaucracy, will be a tough market to crack for Apple.
If I were an Apple shareholder, I would worry a lot about the future of the company if the FBI wins.
This article is brought to you courtesy of Tony Daltorio from Wyatt Investment Research.