The recent unrest in China is sure to take a toll on Apple Inc AAPL, but just how much will the Cupertino-based company be impacted by its China exposure?
What To Know: Protesters in Shanghai and Beijing spoke out against China's strict zero COVID policy over the weekend after a deadly fire erupted in Urumqi. Protests have spread across the nation in the wake of the fire as protestors claim it was caused by extreme lockdown measures that delayed rescue efforts.
Apple's key manufacturing hub of Zhengzhou is likely to see production shortfalls this year as a result of China's strict COVID policies.
Loup Funds' Gene Munster took to Twitter Monday afternoon, saying it's anyone's guess as to how long production has actually been shut down in China, but if you know the answer, it's pretty easy to figure out the rest.
"You can do the math. Number of days x 325K units x $900/unit," Munster said via tweet.
He noted that he was addressing the situation and its potential impact on Apple amid a "whirlwind of speculation" related to the unrest in China. If production is shut down for a week, it would equate to a 1.5% hit on Apple's quarterly revenue, Munster said.
"This is going to have a negative impact on the December quarter and a positive impact on the March quarter," Munster said.
When all is said and done, China will still be the world's second largest economy and Apple will still be the largest leading American company in China, Munster said.
"No one else occupies that enviable - well earned position," Munster said.
AAPL Price Action: Apple has a 52-week high of $182.94 and a 52-week low of $129.04.
The stock was down 2.98% at $143.69 Monday afternoon, according to Benzinga Pro.
Photo: courtesy of Apple.
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