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Comment by heavyset_go | Hacker News Reader

The US needs Apple, China doesn't need Apple. That asymmetry can be exploited.

Are you sure about that? A million people losing their jobs can have an impact.

"It is the world's largest technology manufacturer and service provider. While headquartered in Taiwan, the company is the largest private employer in the People's Republic of China and one of the largest employers worldwide."

https://en.wikipedia.org/wiki/Foxconn

And that doesn't count all the companies that make the subassemblies and parts for Foxconn either.

Yes, but Foxconn is not Apple subsidiary. Apple is just one of their customers. Saying million would lose job because Apple moved out of China seems like hyperbole from the other side.

Apple is by far their largest customer.

So, what will people in the rest of the world buy then? There won't be new iphones for years, and foxconn will continue to make phones for other manufacturers, whose sales will go up.

What scenario is there that Apple couldn’t make phones in China and every other manufacturer could?

Obviously because Apple is a US company and every other major smartphone company is Asian and has a very different relation to China

Besides Samsung and Apple most of the top cell phone makers are Chinese.

http://www.mobilecellphonerepairing.com/top-mobile-phone-man...

In a trade war, those phones won’t be making it to the US.

AAPL is a good chunk of the S&P 500, close to 10% of its market cap.

I don't think a loss of value to the tune of $2.5T would go well for the US economy.

I don't think either country cares much about unemployment, but the US, at least, has a history of going to great lengths to maintain the value of its assets.

And I'm sure there are companies eagerly awaiting to get the business Foxconn turned down because Apple outbid them or made favorable agreements.

Apple revenue is $400B.

US GDP is $21,000B.

Losing 2% would hurt but it wouldn’t cripple the US.

I don't need Apple

Neither do I, but Apple tanking would have consequences for the US economy.

Where do you think your Android phone is made?

Samsung pulled out of China manufacturing in 2019

How many people does Apple employ in America vs those employed in China (indirectly)?

How much does the financial health and economy in the US depend on AAPL maintaining value versus the same in China?

Does the US need Apple?

They need Apple in the sense that AAPL is represented in many different financial instruments, products and portfolios, and it tanking would have consequences outside of shareholders just losing value.

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