Hacker News Reader

Comment by samatman | Hacker News Reader

Apple doesn't need Europe. The region it's included in is worth 19% of Apple's business, and that region includes the Middle East, India, and Africa. Europe might be 10% of the business, maybe a bit more, maybe less.

Worth keeping in mind. They're quite able to wind down business in Europe if the alternative is being forced to build their devices in a way they don't want.

Raising prices to match the extra cost of doing business in Europe is a no-brainer. If that means it's no longer profitable to sell to the subcontinent, no problem, they'll just... stop doing that.

View on HN

It's cute to imagine a world where that happens, but there isn't a chance Apple abandons their multi-billion dollar European investments because everyone hates the lightning connector. The premise of Apple leaving Europe is an idle threat.

Maybe have a look at the “Brussel effect” wiki page. The EU is big enough to make worldwide changes financially the rational choice, so these choices are made based on EU laws.

> They're quite able to wind down business in Europe if the alternative is being forced to build their devices in a way they don't want

This assumes Apple's management has the stomach for the resulting negative revenue growth and the subsequent reaction from Wall Street.

Also, a huge chunk of their cash offshoring / tax minimization strategy is based in Europe: they'd revert to USB-A charging ports if the choice was between that and shutting down the Irish office.

Why would they pull out of Ireland? They could have one store in Dublin, that sells the last model iPhone which was grandfathered in, while supplies last, for a couple grand, or whatever the price ends up being once Europe is done objecting.

EMEA does not include India.

And the MEA is peanuts compared to the first E when you think about money available to spend.

Have you read any of Apple's financials?

It says right there, in every single one of Apple's quarterly and annual reports:

> Europe includes European countries, as well as India, the Middle East and Africa

Even if it's just 10%, you don't abandon 10% of your market. That's 8 billions for Apple just last quarter.

Reply on news.ycombinator.com