Apple earnings could be cut 29% on China ban, says Goldman

London/Amsterdam: Goldman Sachs analysts have crunched the numbers and found that if China was to retaliate against the US with a ban on sales of Apple Inc.’s products, this could wipe out 29% of the iPhone maker’s earnings.

Though Goldman takes no view on the likelihood of a potential ban, such a restriction would represent 100% of estimated Apple earnings exposure to both mainland China and Hong Kong, assuming some offsetting impact from cost savings in sales and marketing, analysts including Rod Hall wrote in a note.

Worries over the wider impact of the trade war have intensified after the US blacklisted Huawei Technologies Co. last week, which places a question mark over the Chinese company’s partnerships with US chipmakers, software and component suppliers.