[ad_1]
Google, Facebook and Amazon could face the consequences of a trade war waged by the United States with China. As the Trump administration is considering tariffs on networking equipment from China, this could include companies that buy Chinese components.
Radio Sputnik spoke of the possible impact of President Trump's commercial fight on American giants with Daniel Ives, strategy director and leader Sputnik: How nervous are the technology giants in the face of consequences of this trade war between Donald Trump and China?
Daniel Ives: You saw Tim Cook and Apple in front and center as really understanding some of the ramifications. There is no doubt that Apple is in its own category because of the amount of sales from China as well as Foxconn's facilities and the production of the iPhone.
I think what's going to happen, it's on the other side of the valley The worries persist now, not only among the chip makers, but when we look at the giants of traditional technology It's because they buy a lot of fiber optic networks for these buildouts.
READ MORE: Chinese wind giant producer Theft of exclusive technology
The concern is not only from the point of view of costs, but it disturbs the chain d & # 39; supply? So, it's not just the unintended consequences here; there is a training effect. I think you are starting to see Silicon Valley going from background noise to getting a little clearer in terms of impact. I think this is an issue on which investors are also focusing if the trade war continues to heat up.
Sputnik: Can we talk in more detail about the technology companies and industries that could be the most affected by the new tariffs?
Daniel Ives: Certainly, depending on the path, are flea businesses. If you think about it from the point of view of the chip maker, it is not just going to increase the cost throughout the supply chain, but it could disrupt the supply chain. And I think that's a concern for the chip companies right now. That's from Intel for AMD to NVidia and then you look at Broadcom and Qualcomm and really a whole food chain of suppliers that could be affected there.
READ MORE: Cover your tracks: Apple internal note on leaks are leaking
I think the next is Apple, kind of center, because a lot of demand, let's call it 15-20% iPhones coming out of China from the point of view of production there is one thing, but 15-20% of iPhones sold are coming out of China.
So, there is a concern about tit-for-tat as well as this is changing the supply chain for Apple. This is a bit of concern that is looming on the horizon. And look at the traditional technology giants of Amazon, Google, Tesla, there is an increased cost that increases the complexity of the supply chain and I think these are some of the concerns that are starting to be more invasive in the valley.
Sputnik: How much will the consumer be affected?
Daniel Ives: I can tell you from an Amazon point of view. Amazon will simply pbad on the incremental cost to the consumer. In the end, these companies will pbad on the costs, in the end it's the consumer who will bear it. from electronics to basic consumption and of course even in other areas.
I think the concern, especially from the point of view of the electronics, is that components are more expensive than smartphones, TVs, computers, will absorb the cost;
READ MORE: "I can not trust her: Unbidden, Amazon Amazon Records Owner, Sends a Cat to a Friend
This is the only one I've ever seen. more general concern here. We understand that it is a political trade war, but if the consumer gets hurt and begins to impact on US technology companies and as investors begin to focus more on this problem they will become a wildfire situation.
Sputnik: This will definitely be more than the effect of training; but you just said that smart card companies are at the top of the list and, of course, what immediately comes to mind is the interests of national security. What part of a national security problem could it become for the United States?
Daniel Ives: I do not think it's really disturbing because the issue of national security can be used more. Obviously, we see the Huawei GTE, he is talking about the Broadcom and Qualcomm deal that has been closed. So, I do not think there is a lot of threat to national security.
I consider here that we are using our own costs and more impact on the supply chain, which is of greater concern to companies and investors. So, I would like to put them in two different buckets. I think national security is much more tied to 5g, obviously there is a line drawn in the sand after Broadcom and Qualcomm, but you see with GTE that there was obviously an impact where ultimately the states United had to save this company.
Sputnik: You mentioned the investors and, of course, we had guests last month talking about the trade war and they all said that the investors will withdraw, that they will wait.
Daniel Ives: I believe investors realize that it's about a poker game being negotiated. And I think the street [Wall] has become more and more in the way Trump negotiates through the media. And finally, if you look at the impact, I think the bark is going to be worse than the bite in terms of the severity of this trade war. That's what the [Wall] Street is saying right now.
READ MORE: American Investor on the Future of Creativity: Soon, we will buy 'AI Robot' Albums.
So I think it's a we are continually retiring here on the worries of the trade war. I think that until now, it is still a very confusable amount that would really be put into the technological system, so I think investors are not too worried today. but that's a problem and the hotter it gets, the more the problem will become more real. I think it's the goal but from now on, I believe it's a bit more confined, that's why they should not be so worried.
The opinions expressed in this article are solely those of the speaker and are not. necessarily reflect those of Sputnik.
[ad_2]
Source link
