Apple, he points out, is not the first foreign company to be targeted by the People’s Republic. YUM brands (part of KFC) saw sales fall 20% year over year in January and February after it was hit by a similar Chinese TV investigative report last December. Toshiba lost its No. 1 spot in Chinese notebook sales after state-run media reported in 1999 that the Japanese manufacturer had different policies for Chinese and American customers.
To calculate the damage the current campaign could do to Apple, Yeung uses Hewlett-Packard’s (HPQ) experience as a template:
Continuing the bearish tone that entered Citi’s Apple coverage with the departure of veteran analyst Richard Gardner, there’s more than a whiff of “we told you so” in Yeung’s remarks.
Apple turned in its fifth down day in a week, closing Monday at $428.91, off $13.75 (3.11%).