“The Brexit news helped send the price of Apple’s shares downward… However, Apple’s shares buffeted the news better than most,” Daniel Eran Dilger reports for AppleInsider. “The British pound plummeted against the U.S. dollar, collapsing from $1.50 to close at $1.37, a massive move for a major currency and resulting in the pound’s lowest point in more than 30 years. The Euro also fell, but by a much smaller amount (close to 3 percent against the dollar). Currency exchange rates play a major role affecting the price of Apple’s exports, so the weakening of any foreign currency against the dollar is generally a problem for Apple.”
“Going forward, the UK’s departure from Europe will continue to roil the markets simply due to the uncertainty involved. No country has ever left the EU before, and the leave vote was promoted emotionally through a campaign centered on rejecting the advice of ‘elite experts,'” Dilger reports. “Companies doing business in the UK will have to face an unknown set of new trade agreements and other regulation changes. The change is expected to hurt UK startups, both because it impacts their ability to hire EU citizens and introduces a lot of new complexity related to their ability to sell their products to Europe. But it’s also a benefit in the sense that local firms can sell their products at a favorable exchange rate. ”
“Apple also has 39 Retail Stores in the UK, and the region generates significant sales of iPhones and other Apple gear. A dramatically lower pound means that UK citizens will face lower buying power, likely resulting in higher prices and therefore blunted demand for Apple’s products and services,” Dilger reports. “At the same time, the lower Pound also means that Apple can hire employees and build out new offices and retail stores in the UK at a discount. Apple could also take advantage of panicked markets and newly conservative investors to offer new bonds in the UK, increasing its debt leverage to effectively use foreign earnings to fund American investments, dividend payments and stock buybacks.”
Tons more in the full article here.
MacDailyNews Take: The untangling of this ball of knots will be extremely interesting to watch and hopefully illuminate some elemental truths regarding economics, human nature, sovereignty, trade, geopolitics, national cohesion, etc., etc., etc…
SEE ALSO:
Historic Brexit vote roils markets worldwide; Apple shares drop – June 24, 2016
DED did not mention the possibility that the Brexit might give Britain the impetus to leave the Commonwealth. Might be a good thing since the sun is always setting on that empire.
/shjttt (satire, humor, joke, tall tale for those who can’t tell).
Gove, Farage, et al. have already worked out how to turn that particular clock back. We’re now having a vote on whether to leave Planet Earth entirely. The Sun always shines in space, and apparently it will stop our millions of Schroedinger’s Immigrants from simultaneously stealing all the jobs whilst claiming all the welfare benefits.
You’ve found a planet that will accept you. I’d keep that under your top hat, otherwise some country might decide to invade.
Bravo for finally sticking it to the Rothschilds’ and saying “we know”!
Out of curiosity, was your reference to the conspiracy of international Jewish bankers accidental or deliberate? Did all the people awarding your comment 5 stars also recognize the anti-semitic implications?
Deliberate, but he guessed most readers wouldn’t quite get it.
your black narcissus corsage awaits you in my refrigerator, Michaele, please say “yes, we can.”
xxx ooo
I must RSVP to The Obexis Ball by January 19th, I await the privilege of your company as my date on that magical evening.
xxx ooo
With Britain’s withdrawal, Apple can move its Ireland center to the London area.
Could you explain why Apple might want to move its center of operations in the European single market to a city outside that market? Are you suggesting that British bureaucrats with an isolationist mandate will be more friendly to European free trade than the existing EU bureaucrats? Frying pan, meet fire.
Oh… I see – Sovereignty = Isolationist (and apparently radical, racist, and any other impugning term the STATISTS come up with).
Statists – watch as your most recent move towards that ever-promised UTOPIA comes crumbling down. Ultimately freedom prevails (although it can take generations). The EU was and will always be another hopeless, hapless Statist wet dream of total control over all. The EU is a failure pure and simple. The Brits would be idiotic to continue to belong to that hapless organization as it inevitably crashes and burns (as do all the idiotic Statists utopian schemes).
Briton – stand for your own sovereignty. We, the remaining free people in America (Constitutional Conservatives all) stand with you and all freedom-loving people.
Do you really think that the Leave vote was not about becoming more isolated from Europe? Do you think that the next British Government (and the EU itself) will not implement the vote by making it more difficult—rather than less difficult—for a foreign company headquartered in the UK to coordinate its operations with the rest of Europe? Do you think that the UK laws that must be quickly adopted to replace all the EU rules will be any more tolerant of foreign enterprises than the current set?
Given all the above, do you think that any rational multinational company currently headquartered in a country that will remain in the EU would trade that known quantity for complete uncertainty by moving to a possibly disintegrating country with an uncertain economic future?
This may be a great move for native Englishmen living outside London, but it is not going to make life easier for Apple. This is an Apple site, after all.
… location with its center in Ireland. Yes, the Brits could offer a better tax break, but can the off the population the EU has to offer?
Apple might want to create a NON-EU center, based in London. Keeping the EU center located in Ireland. I’m sure there are such discussions already. But REPLACE? Nonsense!
Hurray for a country which wants to govern itself.
Stupid old, racist white people. Like Trump. The young screwed themselves because they like to make noise but they don’t vote.
Calling people racist because they abhor edicts from non-elected government officials? Seriously?
Welcome to The New World Order.
oops, you’ve drawn the Old Maid.
sorry.
You lose all credibility when you drop the racist card right off the bat.
The young unfortunately think they have it all figured out and that experience is not required in this life. I remember telling my daughter on her 19th birthday that she needs to hurry up and save the world because all teenagers everything including how to solve all of the world’s problems and she only has 365 days left. One of the problems she never figured out was how to pay for her own college education without going into debt with student loans.
What country? As J.K Rowling has pointed out, the European Union is not the only one that fractured this week.
Just a day after the election, the party that holds almost all of the Scottish seats in both the British and Scottish parliaments is calling for independence. Ian Paisley, Jr. (!) is advising Protestants born in Northern Ireland to quickly get a second passport from the Republic of Ireland in order to protect their rights as Irish Europeans. The largest NI Catholic party is calling for talks to bring Ulster into a reunited island. So far, the Welsh are still planning to remain in the United Kingdom, but that could change if the other two minority nations leave.
Indeed. It will be the Disunited Kingdom that finally leaves the EU.
It might also mean that Apple will have to pay its Corporate Tax bill for sales in the UK to the UK government and not shuffling the money through Ireland.
There might also be implications for Apple selling iTunes and other services, which are currently channeled through a low tax ( Luxembourg ) part of the EU. If the UK is no longer part of the EU, then the tax arrangements will most likely have to change.
EU rules allows Apple to charge the VAT rate for the purchaser’s country, but pay the tax applicable in the country where the service is provided from.
Unless the Gov can really make a strong case for unity, I do see Scotland and then maybe N Ireland making the break. Where does that leave UK….possibly a slide into obscurity and irrelevance on the world stage. Mind you if that means the dismantling of armed forces, hey I’d vote for that.
Perhaps a big plus, will be the major corps such as Amamzon, Apple and Google, will not be so lucky in sidestepping the tax issue.
Scotland’s break away within three years is now inevitable. The Scots just witnessed a perfect example of how England can overwhelm Scottish wishes by sheer weight of numbers, and they want to be in the EU more than they want to be in the UK. I expect the second Indyref to end 60-40 in favour of Independence.
The UK as it currently exists is finished. It’s just a matter of time now.
Par for the course. Donald Trump managed to annoy the Scottish people when he recently visited his golf course in Scotland and congratulated the assembled crowd for voting to leave the EU. He seemed unaware that Scotland was not England and that Scotland as a whole had clearly voted to remain in the EU, but when all the votes for the entire UK are added up, Scotland’s votes were not enough to make the difference.
UK citizens, I apologize for the very poor example set by the U.S. political system over the past couple of decades or more. We must have given you the impression that “gut feel” and emotion are a good way to govern a country. After all, it worked so well for former President Bush and his war against terrorism. The Republican Party continues to eschew science and embrace gut feel as truth, and that is working so well that they are going to nominate Trump for President and lose for the third time in a row.
Gut feel and emotion are *not* good guides for governance. Don’t let the sound bites and emotional appeals lure you into serving the purposes of the wealthy and powerful at the expense of regular citizens. While compromises must be made to co-exist with a group of other countries in an alliance like the EU, the benefits should not be overlooked. It is not too late to reconsider and stop the process of secession.
“Don’t let anybody tell you businesses and corporations and … um, you know… it’s corporations and businesses that create jobs.”
– The Pantsuit Succubus, October 27, 2014.
There’s ya’ some gut feel and emotion, Melvin.
Gut feel? I think it was gut feel when the UK entered into the EU and you’re correct that it is not a good guide for governance. Glad the Brits figured that out.
The best rule for people is self-rule completely absent from non-elected foreign elitists forcing their utopian controls and beliefs upon them. Bravo to the Brits!
Now the people in the USA have to stand united against elitists here trying to force a North American Union down our throats.
In the UK, we are very aware of comparatively recent history and of course analysis of factors leading up to WWII are studied by all students.
People often try to understand how somebody who proved to be as evil as Hitler could have come to power in a sophisticated country like Germany.
It only takes uneducated, unthinking people to believe in the lies and propaganda that is drip-fed to them for good people to make bad decisions. Many people are unable to think for themselves, to critically think things through to a logical conclusion, to understand cause and effect. They unthinkingly believe whatever they are told. They makes decisions based on shallow reasons such as someone’s charisma. They cannot imagine anything beyond their own tiny world. They have a selective memory. They insist that everything must be someone else’s fault.
The Brexit campaign displayed many of those characteristics and people in the US won’t have to look far to find politicians doing something remarkably similar. Hitler blamed the Jews for problems within Germany. Brexit campaigners are blaming immigrants for problems with the UK, which are actually caused by government underfunding. You all know who is being blamed for problems in the US. History is repeating itself all around the world.
For every complex problem there is an answer that is clear, simple, and wrong.
H. L. Mencken
@KingMel – ah… another Statist pointing out his ignorance (it is fun to watch).
1. EACH YEAR of your King’s (Obama) reign, the US has endured a significant TERRORIST ATTACK due in GREAT part to Oblamo’s persistent policy of denigrating the US military and intelligence services while simultaneously VIGOROUSLY supporting Islam at EVERY turn. He can’t even appreciate the inanity of not defining the enemy (probable because he does not see Radical Islam AS the enemy).
YOU turn back to BUSH (as you have been ordered to do by your masters) and compare HIS terrorist results (NO attacks after 911 – brought on by Clintons failures) to Oblamo? Really?
2. “Eschew Science” – by that you mean the global warming hoax. Obviously you are not a scientist, nor have you read beyond the Statist/moronic-media propaganda. It would take too long to review the multiple reasons why it has NOT been scientifically proven IN THE LEAST that man made global warming exists, AND that the organizations pushing it have openly stated the GOAL is for wealth transfer – NOT to fundamentally change the weather. Hint – “hide the decline”, the “hacked emails proving deceit, the multiple failed predictions, the FACT of NO global warming for almost 20 years, the FACT that climate does, indeed, change naturally and the SUN is responsible for this, the FACT that CO2 is NOT a pollutant (plants love it), the FACT that WATER vapor is by FAR has a greater influence on atmospheric heat retention, the FACT that we have had global COOLING (touted as the next great problem in 1979 by STATISTS and NewsWeek) as well as warming over the centuries (even before the industrial age (i.e. NO human CO2 production).
SOMETIMES, Buffy, ya just gotta think, and do a little digging…
3. “Embrace gut as truth” basically DEFINES the Statists. “Its just not right, “Its not who we are”, “Its for the children” – particularly laughable when Statists make this claim and vigorously defend abortion/baby parts factories. No, Binky, its the STATISTS who use emotion and gut feel to PUSH their farcical schemes all designed NOT for the stated cause but designed for POWER retention and CONTROL over you and I (since we are much too ignorant to fend for ourselves). Speaking of the racism of implied inferiority – the STATISTS have that perfected in everything they do.
4. “While compromises must be made” – ah… the old Statist line that we have to “come to the middle” on ANY argument made by Statist (but NEVER on any argument made by conservatives and other Non-Statists). No, sometimes compromises do NOT have to be made (what is the compromise for the extermination of the Jews by Nazi Statists? What is the compromise for “honor killings” by islamists?). No, you do have to protect and preserve your SOVEREIGNTY. This, of course, is anathema to Statists since it DISALLOWS central control (i.e. the EU commission – unelected and with complete power over any given EU state). In the STATISTS mind, the STATE is all, and INDIVIDUALITY, SOVEREIGNTY, PERSONAL FREEDOM are to be attacked, impugned and suppressed.
KingMel – you need to do some deep thought – do you REALLY want to lose your personal freedom? The circle of freedom surrounding us is getting smaller and smaller. Can you tell me ANYTHING that isn’t regulated, taxed, or controlled by the all knowing, all seeing Central Government? Do you want even more control over YOUR life? Check out the unelected bureaucracy and the number of LAWS created by it (all not legal if we were still a Constitutional Republic, which we are not sadly).
Once gone, personal freedom will not return for generations….
The collection of flat-earth propaganda and completely made-up “facts” in your second point tells me how seriously to regard the others.
I am curious if you reject psychiatry along with economics and scientific climatology as a form of moronic propaganda.
From your assertion that America is no longer a constitutional republic, I gather that you consider yourself to be the sole arbiter of the Constitution that you profess to Luv. Some of the rest of us can read, too, you know. We do not see any provision in that document that denies a properly limited role for the state, or that privileges unfettered individual self-interest over all the other concerns listed in the Preamble. I am a conservative, and I see your position as radicalism of the most dangerous sort. I am sorry that it has infected so many American and English men who are old enough to know better.
This was a reply to LuvConstitution that seems to have posted the wrong place.
None of this is black or white. The irony in the vote is that regardless of whether England is in or out of the EU, the ‘Elite’ and controlling powers will maintain their control. Unity and cooperation is the better way, even if the issues brought into the system (any system) still have to be dealt with regardless of whether one is in or out. It will all resolve itself in time and we will all learn from it.
Cameron has played a blinder. He rejected a suggestion that a majority vote was needed from all for countries was needed. Silly. But by resigning he’s dumped the problem right into Johnson and Gove’s lap and they will take the blame should it al go wrong. That is not going to work well. The Labour party is in final meltdown and we have no charismatic leader to lead us into the “sunny uplands of peace” Churchill promised in 1940. Boris Johnson has about 1% of Churchill’s intelligence (mind you he fucked up a couple of times) and is all bluster despite supposedly being clever. Additionally, the most popular name chosen for male children in the last few years was Muhammed. Welcome to the Islamic Peoples Republic of Wangland ruled by Sharia Law. 1000 years of history down the drain in 20 years time? It’s highly probable I won’t be around to see it. Perhaps every other non islamic person will have applied to become Irish or Scottish by then