“Billionaire activist investor Carl Icahn told the world on Thursday (April 28) he has dumped all of his shares in Apple, just days after it posted its first quarterly revenue drop since 2003,” Josh Horwitz writes for Quartz. “His reason? China’s ruling Communist Party can do whatever it wants, including potentially shut Apple out of the market.”
“In an interview with CNBC, Icahn said he believed Apple CEO Tim Cook did a ‘great job’ and that the company sells a product that’s difficult for competitors to beat,” Horwitz writes. “But he says he no longer has a position in Apple, because he worries ‘maybe more than a little bit, about China’s attitude.'”
I think Apple has, which we said all along, which is great, great barriers to entrance. You can’t go into that business unless you’re like Samsung which is really like a country backing it. A lot of people tried, a lot of people failed… In China, for instance, they will come in and make it very difficult for Apple to sell there. They could theoretically, you know… They’re basically in some senses I would say, perhaps benevolent but a benevolent dictatorship. I don’t know if benevolent is the right word. — Carl Icahn
Read more in the full article here.
MacDailyNews Take: It’s not the right word and Icahn’s fears aren’t completely unfounded.
SEE ALSO:
Apple stock falls as Carl Icahn dumps all of his shares – April 29, 2016
Carl Icahn dumps all of his Apple shares; stock drops – April 28, 2016
Apple reports earnings miss in Q216 – April 26, 2016
China’s increasing censorship hits Apple, but Apple might punch back – April 22, 2016
China shutters Apple’s online book and movie services – April 22, 2016
Apple CEO Tim Cook joins Robert F. Kennedy Human Rights’ board of directors – April 6, 2016
It does remind me of the movie 12 monkeys.
Just by mentionning it, it will have a precedent. It is a good thing that Carl is out now. He is another loud mouth ranter who had the mic one too often. Retired, go on the beach Carl and STFO!
And does he think that USA is a democracy?
Certainly not. He’s well aware that the Behemoth Bankroll Blowhards have been manipulating the US government for decades. The worst of them bought into the ‘Starve The Beast’ bullshit born out of the Reagan years. Thus our fscked up US government run by the stupid and oblivious. The US government is now representative of whoever forks over the most money and power. And it doesn’t matter which of the two political parties one examines. They’re both reduced to a state of worthlessness as representative of We The People.
So thank you Carl ad nauseam for scouring out the value left in the USA then selling out. The future hates you all.
You spelt demoncracy wrong Alexander.
“You can’t go into that business unless you’re like Samsung which is really like a country backing it.”
That’s the difference. If China knew that the full weight of the US government would come down on them in defense of Apple, as they should, then they’d be far less inclined to screw with Cupertino. Unfortunately the Obama administration couldn’t care less about this great American company.
I’m not a fan of Icahn because of what he does to many companies. But his fear about China is very worrisome.
Probably the only thing preventing China from doing something stupid is the fact that so many Chinese are employed making parts of Apple products.
China is NOT a “dictatorship”. China is a criminal nation under the rule of a totalitarian government, which is what happens to ALL communist states.
Carl? You just figured this out? Did you also figure out that feeding $billions$ to China only makes their FAILure of a government even more powerful? That’s why I personally have been telling Apple to ‘Get The Hell Out Of China’ for the last decade.
Clearly, money gaming skills ≠ insight into the real world at large. If only the gamers could all get this clue. Hello Donald Trump!
Good riddance! im sick of the johnny-come-lately activist investors who care nothing about a company, its products, culure or history. They just want to do whatever it takes to make a quick buck and move on. I hope apple goes to 120 without you carl…
I doubt that Carl pays any more attention to psychotic rants than does Apple. They both seem to be doing quite well on their own. Just sayin.