Chinese cos ask workers to shun iPhones, buy Huawei

Chinese cos ask workers to shun iPhones, buy Huawei

A number of Chinese companies are reportedly boycotting Apple as a show of support for Huawei Technologies.

The report noted that Apple knows that any sudden signal to move production out of China would result in a similar smear campaign that was waged against Samsung could sink their future in China.

In protest, a Zhejiang-based telecom company released a notice titled "An announcement regarding resisting Apple and supporting Huawei" to its employees.

Other companies have been more laid-back though - Shanghai's Youluoke Electronic and Technology offers two free Huawei phones per employee while Fuchun Technology is paying its employees 500 yuan for providing them with a proof of purchase. Overall, Huawei has gained support from more than 200 Chinese businesses. A regional government official said that several hundred businesses were conducting such programs nationwide.

The ongoing trade war between the United States and China could be set to take a significant toll on Apple's (NASDAQ:AAPL) business. In one example, a brewer is giving customers free alcohol of about 30% of the amount they paid to buy Huawei products.

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China's foreign ministry called in the USA ambassador to lodge a "strong protest" over the arrest in Canada of Huawei chief financial officer and said the United States should withdraw its arrest warrant.

Apple doesn't disclose how much revenue it generates from each of its product categories by region, but it's important to note that almost 63% of Apple's fiscal 2018 sales came from the iPhone.

Huawei chairman Liang Hua said on Tuesday the company's operations remained "normal" after the arrest of CFO Meng Wanzhou, and called for the early return of his colleague. The report notes that a Shenzhen machinery producer has threatened to fire employees who do not hand over their Apple products. The executive was apprehended during a layover between flights at the request of the USA government.

The reports can not be confirmed, but Chinese consumers do have a history of boycotting companies from countries that have fallen out with their government. The CFO was reportedly arrested at the request of the US government, which wants to extradite her on charges that she violated sanctions against Iran. The collaboration was meant to see AT&T carry the Mate 10 range of Android phablets but the telecom giant dropped the initiative mere hours before the thereof was meant to be officially announced at this year's CES, having reportedly been pressured to do so by US legislators and regulators who threatened it with scrapping its lucrative federal contracts if it proceeds with the idea of working with Huawei.

The Nikkei Asian Review lastly noted that "South Korean businesses like Hyundai Motor and Lotte faced boycotts past year over Seoul's deployment of a US missile defense system". -China trade relations - Apple has to deal with Huawei. A couple of weeks back, Apple also lost an injunction to Qualcomm in China, leading to a ban on some iPhone models in China.

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