“Apple has benefited from cheap labor and a strong supply chain in China and needs to share more of its profit with the Chinese people or face ‘anger and nationalist sentiment’ amid the ongoing trade war, an article in the state-backed People’s Daily warned Tuesday,” Arjun Kharpal reports for CNBC. “The opinion piece highlights how Apple made $9.6 billion in revenues in China in the June quarter, which helped the U.S. giant to recently hit a $1 trillion valuation.”
“But the continuing trade war between the U.S. and China could leave Apple and other U.S. firms vulnerable as ‘bargaining chips’ for Beijing, according to the article,” Kharpal reports. “‘The eye-catching success achieved in the Chinese market may provoke nationalist sentiment if U.S. President Donald Trump’s recently adopted protectionist measures hit Chinese companies hard,’ the People’s Daily said.”
“It’s unclear how the publication thinks Apple should share its profits with Chinese citizens,” Kharpal reports. “At the time of publication, Apple had not responded to CNBC’s request for comment on any of the claims in the article.”
Read more in the full article here.
MacDailyNews Take: Somebody’s feeling the squeeze.
The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A. Trade must be fair and no longer a one way street!
— Donald J. Trump (@realDonaldTrump) June 24, 2018
I’m cognizant that in both the U.S. and China, there have been cases where everyone hasn’t benefited, where the benefit hasn’t been balanced. My belief is that one plus one equals three. The pie gets larger, working together. — Apple CEO Tim Cook, March 24, 2018
At least half of the popular fallacies about economics come from assuming that economic activity is a zero-sum game, in which what is gained by someone is lost by someone else. But transactions would not continue unless both sides gained, whether in international trade, employment, or renting an apartment. — Thomas Sowell, June 14, 2006
SEE ALSO:
Why the US-China trade war may not have much impact on Apple – July 17, 2018
Apple launches $300 million China Clean Energy Fund – July 13, 2018
What trade war? Markets shrug off US-China dueling tariffs – July 6, 2018
U.S. President Trump puts tech in trade war crosshairs with planned curb on China investment – June 25, 2018
The Trump administration told Apple it would not place tariffs on iPhones assembled in China – June 19, 2018
Chinese stocks end at 2-year low, Apple suppliers sink on trade-war concerns – June 19, 2018
Why Apple CEO Tim Cook is acting like tech’s top diplomat – June 18, 2018
Apple CEO Tim Cook doesn’t expect a full-blown trade war between the U.S. and China – June 5, 2018
President Trump and Apple CEO Cook meet at White House with trade the focus – April 25, 2018
Apple CEO Cook to meet with President Trump – April 25, 2018
Why Apple stock can withstand a Chinese trade war – April 5, 2018
Apple CEO Tim Cook heads to China as President Trump orders 25 percent tariffs on up to $60 billion in Chinese imports – March 23, 2018
BoA Merrill Lynch: Apple is prepping a ‘foldable’ iPhone; U.S. and China trade tensions not an issue for Apple – March 23, 2018
Designed in California. Assembled in China. How Apple’s iPhone skews U.S. trade deficit – March 21, 2018
President Trump blocks Broadcom-Qualcomm deal over China concerns – March 13, 2018
Elon Musk sides with President Trump on trade with China – March 8, 2018
Analyst: President Trump’s tariff impact on Apple would be just a ’rounding error’ – March 7, 2018
Timmmaaaaay!
The days of wine & roses – aka cheap Chinese labor with few complications – may be quickly coming to an end, as it should. How cynical and awful is it for companies to look around the world to find the cheapest labor supporting over the top profits? Time to bring it back to the good ‘ol U.S.A. and more ideologically attuned countries.
By not sharing a fraction more if it’s wealth than necessary (a minimum wage) Apple has not endeared itself to the Chinese, or anyone else except stockholders (for which I am one). With the middle class shrinking this needs to change. It’s almost as if companies should be required to share a certain amount of their wealth and profits to those who made it possible. Certainly not enough do of their own volition. I know it’s not a popular idea among greedy capitalist conservatives. (Btw I am most certainly not a dyed-in-the-wool liberal nor extreme conservative but fair’s fair.)
The jobs they created is sharing enough.
Where do u think the middle class boom in China stems from.
All is relative.. and idealogue freeloaders are out to lunch with reality of life …..
And dont fool yourself.. u are on the left.
Trump folds when push comes to shove. The massive debts that Trump and every administration since Clinton are held by bond buyers like China. The USA cannot win a trade war. It is in debt and has a population of entitled instant gratification brats who abhor hard work. The USA consumes vastly more than it produces. Good luck digging out of the hole with no trading partners.
The jobs they created is sharing enough.
Where do u think the middle class boom in China stems from.
All is relative..
And dont fool yourself.. u are on the left.