A new report by Citi claims that Apple iPhone sales could “halve” in the coming months due to Chinese patriotism. Chinese citizens are more likely to pick national, Chinese brands over American ones.

“The US/China trade situation will result in a slowdown of Apple iPhone demand in China as China residents shift their purchasing preference to China national brands,” Citi commented.

Apple products not only aren’t seen as that desirable anymore, but they’re also hurt by tariffs and sanctions that make manufacturing more expensive and ultimately leads to increased prices. Apple has been slowly moving their manufacturing to India to, but not exclusively, avoid some of the sanctions placed on Chinese imports to the US.

This causes a lot of trouble for Apple who is supplying parts from different regions of the world, including China and the US. The Trade War has caused a lot of emotional insult towards the average Chinese citizen, leading to the “informal Apple Boycott” in China.

China is a huge market for Apple, as pointed out by Citi, and losing it or its trust would be a gigantic blow to the Cupertino company:

“China represents 18% of Apple sales which we believe could be cut in half,”

[via CNBC]

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