Trump Says He's Unconcerned About Apple's China Sales Warning

Trump Says He's Unconcerned About Apple's China Sales Warning

Trump Says He's Unconcerned About Apple's China Sales Warning

Sales in China, which The Wall Street Journal says account for nearly 20 percent of global sales, have dropped amid President Donald Trump's trade war with Beijing.

A total of $75 billion was wiped off the value of the technology group, which was the biggest company in the world and the first trillion-dollar group until November.

Apple Inc shares tumbled as much as 10 percent on Thursday after the iPhone maker blamed weak China demand for its revenue shortfall in the holiday quarter, a clear sign of the company's struggles in the world's largest smartphone market.

"The iPhone has been supporting the company for than a decade", said Roger Kay, analyst at Endpoint Technologies Associates.

Apple is the latest company grappling with increasing Chinese consumer anxiety. The price-earnings ratio of the Nasdaq 100 Index hit a four-year low below 20 last month, and Apple itself traded close to 12 times annual profit, more than three percentage points below the mean for the Dow Jones Industrial Average.

Jerry Zigmont, owner of MacWorks, a New Haven, Conn. -based Apple consultancy, told CRN on Thursday that he hopes the troubles in Apple's business will be a "wake-up call for them".

China still is one of the fastest-growing economies, with 2018's expansion forecast at about 6.5 percent. Furthermore, Cook conceded that the revenue from iPhone sales was lower than anticipated.

More news: Patriots' Tom Brady says he 'absolutely' believes he'll be back in 2019

Any new product offering from Apple is unlikely to be revealed before September, when the company traditionally unveils its new iPhones. On Thursday it was also announced that Apple is likely to remove some iPhones from stores in Germany, as Qualcomm moves to enforce an earlier court order banning the sale of some iPhone models in the country.

"Some investors will consider the stock broken. but we've followed the company long enough to know there is cyclicality in the market's relationship with Apple".

Apple and other tech stocks managed to gain back some momentum on January 4.

Some analysts said Apple erred in boosting the price of its new iPhones to well over $1,000 in a global smartphone market that is largely saturated and facing tougher competition. Tech analysts say local brands like Huawei and Oppo have been closing the gap with Apple in terms of performance and design even while Cupertino continues to raise its prices.

The Dow Jones Industrial Average tumbled more than 660 points as Apple stock dropped almost 10 percent - the biggest single day decline for the company since 2013 - just one day after it slashed its revenue forecast.

"The question now is will Apple change its strategy or stick to its hubris", Ives said. While macroeconomic challenges in some markets were a key contributor to this trend, we believe there are other factors broadly impacting our iPhone performance, including consumers adapting to a world with fewer carrier subsidies, United States dollar strength-related price increases, and some customers taking advantage of significantly reduced pricing for iPhone battery replacements.

Related news

[an error occurred while processing the directive]