“Apple shares have slid steadily amid tumultuous U.S. trade negotiations with China, as investors fear CEO Tim Cook’s warning earlier this year about iPhone sales in China may yet come true,” Michael Sheetz reports for CNBC. “Cook warned in January that a weakening economy in China would hit Apple financially. The company lowered its 2019 revenue forecast accordingly to $84 billion. Apple blamed a variety of factors for the lowered guidance but especially focused on slowing revenue ‘primarily in Greater China,’ saying getting overseas customers to upgrade to newer iPhones was ‘not as strong’ as Apple expected.”
“In response, Apple’s stock fell sharply in January. But in the months since, Apple’s stock roared back. At the beginning of May, Apple was up nearly 35% for the year,” Sheetz reports. “When Apple reported strong first quarter earnings at the end of April, Cook pointed to an uptick in the company’s China prospects as a main driver.”
“The CEO also told CNBC that part of the company’s strength in China was due to progress made by Trump’s administration in trade negotiations,” Sheetz reports. “‘I believe that the trade relationship — I don’t mean the tariff, I mean the tone — is much better today than it was in the November-December time frame. That affects consumer confidence in a positive way,’ Cook said on April 30.”
Read more in the full article here.
MacDailyNews Take: As older iPhones are no longer supported by new versions of iOS and 5G iPhones make their debut in 2020, sales of iPhone – which has very high customer satisfaction – will be just fine in China and everywhere else. Of course, the U.S. and China will have a trade agreement in place by then, too.
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
SEE ALSO:
Apple’s iOS 13 rumored to drop support for iPhone 6, iPhone SE and iPhone 5s – May 10, 2019
Apple not yet hurt by China tariffs, likely to simply absorb the added cost – May 10, 2019
Apple temporarily escapes new tariffs as U.S.-China trade war escalates – May 10, 2019
Dow futures fall after President Trump tweets ‘absolutely no need to rush’ on China trade deal – May 10, 2019
China overplayed its hand with U.S. President Trump on trade, and it could cost them dearly – May 9, 2019
Apple CEO Tim Cook optimistic about U.S.-China trade talks – February 12, 2019
President Trump says U.S. doing well in trade negotiations with China – January 23, 2019
China’s 2018 growth slows to 28-year low, more stimulus seen – January 22, 2019
Apple CEO Tim Cook: I’m very optimistic about U.S.-China trade talks – January 8, 2019
Advisor to President Trump: Apple’s sales should pick up when U.S.-China strike trade deal – January 3, 2019
Sadly this is the way it has to be for now. China has been stealing our IP for years. And now it has to stop. I would rather pay more money for a iPhone or whatever made in the USA. China needs us more than we need them. Don’t forget that Mr. & Mrs. Consumer.
Okay, that sounds nice, but Cook will never give you the option of a Made-in-USA iPhone. Apple already tested how much they could jack up prices and their X model sales are down dramatically for two years now. Ask Cook yourself why Apple refuses to do a Special Edition made by ‘mericans.
To its credit, Apple does assemble the Mac Trashcan in Texas, but even MDN hesitates to recommend anyone to buy the antique. So much for patriotism.
I suspect Trump will be surprised how price sensitive the lower classes are in the USA. As a self proclaimed billionaire, he has no concept of the average household budget. The pricing hikes will unpredictability ripple across the economy and when the end consumer finally feels the pain, we’ll soon see how USA consumers appreciate being treated like pawns. Sales of big ticket items are already down, it simply takes time to hit average people’s pocketbooks.
In the next moment, watch as Trump attempts to tweet shame Big Pharma into reducing prices by threats of importing drugs from Canada. After all, Donny now cares for the poor USA drug consumer. The hypocrisy is painfully obvious.
It’s really impressive how China has managed to innovate by copying the most important US companies – Apple, Facebook, and now Starbucks.
Bravo China – As long as you don’t have a real legal system, go hog wild!
You don’t have any construction background?, Trump will be long gone, even if Apple started today it would be 5-7 years to buy land, design, build, move in and start any type of production…..
It would take any other company 1-3 years to build a factory and start production. Apple however would have Ive bottleneck every aspect of the project.
The Apple Park donut cost an estimated $5 billion. Land was acquired in 2006, design revealed in 2011, doors opened in 2017.
……and there hasn’t been a truly innovative development in the Mac business since groundbreaking.
“It would take any other company 1-3 years to build a factory and start production”
Apple doesn’t make anything. Foxconn does. And Foxconn doesn’t make stuff JUST for Apple, they make lots of things for lots of companies. Apple’s not going to open any kind of factory anywhere… and Foxconn isn’t going to open a factory JUST for Apple. AND neither are going to open a factory without having all the supporting infrastructure in place that makes manufacturing today as responsive as it is.
A lot of old people just don’t understand how much the world have changed. They’ll be screaming “BUILD A FACTORY” until they cash their last social security check.
Any other company doesn’t have production runs of 100,000,000 devices.
I don’t think you can make that point, TxUser. You know very well there are numerous examples of commodity products with much higher production rates.
And if you want to compare mobile phone production rates, one would have to nitpick the details. Apple makes fewer models than its direct competitor/frenemies, but by total volume companies like Xiaomi, Huawei, et al are in ascendency while both Apple and Samsung have obviously chosen to focus on higher priced, lower volume positions. Sammy’s sales have plummeted and Apple’s mobile sales are actually in decline as well. Apple is already outproduced… https://9to5mac.com/2018/04/27/iphone-sales-decline-china/
Inability to compete at lower priced market segments is unfortunate for Apple because without a significant world market share in any operating system, Apple cannot expect its services and app sales to keep shoveling the cash into its coffers. Apple is losing the race in China to less expensive makers. Tariffs and a souring of international relations won’t help any either.
Er….I seem to remember Apple had three data centres built in record time, but then it was just using modular construction with standard components. Which is about as different as could be compared to the ‘every single component above ground is a one off’ for the ‘Ring’.
I started my working life designing and constructing industrial units for the Butler Building Corporation – a US company with a base in Scotland. We could build and clad 20,000 sq ft of factory in a month, but the offices usually took at least fifteen months for even modest executive aspirations regarding company image. And given the change in main contractor after construction had begun, tbh I think it went as fast as was possible.
Isn’t 60-some% of Apple’s stuff bought outside the US? Or more? That’s not going to be tariffed.
Paul Simon had the perfect song for Apple… Slip Slidin’ Away. Basically he was singing about Apple’s quest to become a solid $1T market cap company.
Just a bit of humor about a bad situation for Apple. There are no clear weather signs for Apple. Every day seems to bring about storm clouds ahead. I could have sworn at one point someone had said the dealings with China would be good for Apple. I guess they lied. Oh, well… if this tariff stuff is good for America as a whole, then I suppose just Apple being hurt isn’t as important.
Business Genius in the W.H. not…….and his minions are even dumber.
The thing I find amazing is how many Americans can act contrary to their own best interest. The man was apparently telling the truth when he said, “You can grab them by the [genitals], and if you’re famous, they’ll let you.”
Submerged under all the China news this week was that the US has begun charging a 17.5% tariff on imported Mexican tomatoes. As with all tariffs, this is not paid by the Mexican exporters, but by the US importers, who will have no choice other than to pass it through to consumers.
Because Mexico will likely be sending its production elsewhere, prices are likely to rise by around 40% due to supply not meeting demand. Since the US has almost no domestic tomato production during the winter, grocery-store prices will likely rise by 85% over the next seven months or so.
It is hard to imagine that other imported foodstuffs will not follow the same path. Remember, this is a Chief Executive who was under the impression that you have to show a photo ID to buy groceries, suggesting that he has never been in a grocery store except for a photo-op. He doesn’t know anything about groceries, and he doesn’t care about grocery prices. The food bill of a working class family seems pretty inconsequential when you have the distinction of having been for several years the American individual who suffered the greatest annual financial losses. Unfortunately, working class families can’t get Deutsche Bank or NBC to bail them out of their debts.
The price of a BLT will also be affected by the current flooding of wheatfields and river docks, which is being aggravated by a phenomenon that the Administration denies exists. That same denial prevented the publication of the routine communique of the Arctic Council this week after the US tried to argue that the rapid disappearance of the circumpolar ecosystem was actually a good thing. The other Arctic nations know better–there was destructive flooding near the mouth of the Yukon River in February this year, when there shouldn’t have been unfrozen water within hundreds of miles.
However, we are assured that the infallible gut of this very stable genius knows the solution to China trade and all the world’s other problems. “Just trust me,” as the quarterback told the soon-to-be-pregnant cheerleader.
“The thing I find amazing is how many Americans can act contrary to their own best interest.”
Negative inferences aside, the thing I find amazing is USER RINO will NEVER acknowledge 61 million Americans acted on replacing eight years of malaise.
The dark skin media star intern President had ZERO billionaire business experience or business experience of any kind. PC community organizer in Chicago, is not a stellar resume qualification for president when compared to Trump. Night and day, no contest. The point is Obama rose as fast as an American Idol winner without the qualifications. Worst president in my lifetime achieved the impossible making President Carter look good.
That did not humble Obama’s ego and incessantly lectured us America was not great, we are the source of problems in the world, the jobs were not coming back, adjust to the new normal because I’m clueless, and sorry, I have no “magic wand.”
Sorry is correct, President Obama while expert at mouthing politically correct bland platitudes, there is absolutely NOTHING ELSE left behind the wizard curtain.
“The man was apparently telling the truth when he said, “You can grab them by the [genitals], and if you’re famous, they’ll let you.”
“Apparently?” You don’t know, NOTED. Still obsessing over wealthy Alpha males on the hunt. Breaking News: This is tame compared to what has been going on for thousands of years between the sexes in Spring.
Unlike the me-too movement, not one woman has come forward. So, for now it remains macho guy braggadocio locker room talk, nothing more. You still can’t wrap your liberal head around it and let it go.
So, Trump knows nothing of grocery prices. Well, your hero Hillary knows nothing of driving a car, owning a car, and also nothing about grocery prices. Possibly, her limo driver could teach her and pass it on to the president to MAGA. Bipartisanship grande!
As to the remaining tedious obtuse post, again, inferring presidential blame about flooding fields, rivers and BLT prices, well, I guess President Trump ALSO does not have a magic wand… 🤣
Right back atcha Goeb:
“I find amazing is USER RINO…”
Goeb thinks that applying inappropriate labels wouls bolster his argument. It does not.
“61 million Americans acted on replacing eight years of malaise.”
Goeb thinks that 2009-2017 was a period of malaise. He is willfully ignorant of the constant economic growth that occurred during that period, and moreover has been unable to point to any significant change in economic trends since his party assumed control of Congress in 2010 or when his party assumed control of all branches of government in 2017.
“The dark skin media star intern President had ZERO billionaire business experience or business experience of any kind.”
Now the racism is displayed for all to see. By the way, Trump is a failed businessman “rality TV” personality who has done nothing but take and lose other people’s money. With what is known about his businesses, it appears that his inheritance from Frank Trump placed in an average savings account would have netted greater profits than Trump has achieved with all his failed businesses. Trump has spent most of his adult life seeking new gullible lenders to pay off his old debts. His tax returns, when they are made public, with reveal how he conned Deutchebank and other lenders, defaulted on his corporate bond payments repeatedly, refused to pay bills from his subcontractors, engaged in massive tax fraud repeatedly, used campaign and charitable assets for personal use, and so on. Thank the big bad evil press for finding out the truth about the slimebag.
” PC community organizer in Chicago, is not a stellar resume qualification for president”
Jesus Christ was a community organizer. Trump has zero government experience and it shows every day. What was your point again?
“Obama rose as fast as an American Idol winner without the qualifications.”
So being a lawyer, university professor, state representative, and a US Senator are not qualifications?
” Worst president in my lifetime achieved the impossible making President Carter look good.”
Carter was a decent, honest man who inherited nothing but piles of messes dating all the way back to Nixon’s foreign entanglements, Ford’s laissez-faire economic mismanagement, OPEC’s oil embargo, and so on. But you knew that.
“That did not humble Obama’s ego”
Shall we compare anything Obama has ever uttered compared to Trump’s 24/7 egotistical barrage of bullshit?
“incessantly lectured us America was not great”
Isn’t it Trump who made it his slogan that America is not great, that it needed to become “great again”?
“We are the source of problems in the world”
Cite your evidence please. Admission of less that optimal result — like American soldiers accidently killing innocent Iraqis in a war zone — is nowhere near the slanted view you describe.
“the jobs were not coming back”
Steve Jobs himself said that. And they have not. Labor wages in America have lagged inflation since the late 1960’s (Thank you Tricky Dick for opening China for illegal trade!).
“adjust to the new normal because I’m clueless, and sorry, I have no ‘magic wand.'”
Citation please.
“President Obama while expert at mouthing politically correct bland platitudes, there is absolutely NOTHING ELSE left behind the wizard curtain.”
My what a vivid imagination you have. The President is not supposed to be an all-powerful wizard. He’s supposed to work with Congress to execute fair law for the long term good of all Americans. For over a decade you have failed to make a single point of when Obama did not attempt to act for the greater good. You have whined about costs, you have whined about speeches, you have whined about style — but you have enjoyed the longest economic expansion in the nation’s history. What you should resent is the fact that the cream was all skimmed off by corporate executives and wall street insiders instead of the working classes.
“Still obsessing over wealthy Alpha males on the hunt. Breaking News: This is tame compared to what has been going on for thousands of years between the sexes in Spring.”
Wow. Trump Apologist Goeb thinks sexual assult is normal behaviour.
“Unlike the me-too movement, not one woman has come forward.”
Well I will give you that one, Goeb. Not one woman came forward. Nineteen did.
https://www.theatlantic.com/politics/archive/2017/12/what-about-the-19-women-who-accused-trump/547724/
As is very common in all sexual abuse cases, the weaker poorer party is hesitant to come forward. These women have long held back their accusations because in a he said/she said case, the powerful rich guy can bury any accusation in legal tie-ups for years.
” Trump knows nothing of grocery prices. Well, your hero Hillary knows nothing of driving a car, owning a car, and also nothing about grocery prices.”
Probably true. Why would this be relevant other than your obsession with a has-been politician who hasn’t been relevant for >3 years? Shouldn’t a sitting president inform himself about basic economics before lecturing Americans to take it on the chin with massive increased taxation (tariffs)? If Trump had even a basic understanding of economics, he’d not be lecturing the Fed either, or nominating political hacks he thinks he might be able to politically control.
It took me awhile to recognize that GeoB is just trying to rile me. No reasonable person could possibly mean things like…
• TxUser “will never acknowledge 61 million Americans acted on replacing eight years of malaise.” Obviously, I know that is what 63 (not 61) million voters apparently thought, just as you know that almost 72 million Americans voted for other candidates and almost 90 million additional eligible voters did not like any candidate well enough to vote for him. I can acknowledge those facts. Can you?
• Referring to a man who was twice elected President with far more than 63 million votes as “the dark skin media star intern” is such an obviously racist remark that I can only assume it was intended to provoke. If you really believe that, it is far more sad than provoking.
• “Obama rose as fast as an American Idol winner without the qualifications,” is pretty ironic coming from someone who supports an ACTUAL reality show star who based his reputation on business acumen that we now know was less appropriate for “The Apprentice” than for “The Biggest Loser.”
• I didn’t invent the “grab them by the [genitals]” line. He did. If it wasn’t true, he is a liar. If it is true, he is guilty of sexual assault. Either way, it wasn’t a remark that any reasonable person can dismiss as “tame.” Again, you are either saying this purely to provoke or you really are a sad man who has not come to grips with his overt sexism.
• “Not one woman has come forward.” You’re right. As of February 25, Business Insider counted not just one, but TWENTY-THREE women who have accused him of sexual misconduct. Obviously, that does not include those who have been bought off and are complying with their Non-Disclosure Agreements.
• You compare your hero’s ignorance of grocery prices with “my hero Hillary.” In the first place, she is not and never has been my hero. In the second place, her alleged inability to drive a car is irrelevant. In the third place, you are just assuming that she knows nothing about grocery prices. Finally, she did not take an action that will boost the retail price of retail tomatoes by from 40-85%. Your hero DID.
• “As for the remaining obtuse post again inferring presidential blame about… BLT prices, well I guess President Trump does not have a magic wand.” No, he has a pen and has used it in a manner that has (1-Bacon) Resulted in China putting a 62% tariff on American pork, threatening to put the producers out of business. (2-Lettuce) Cut back on FDA inspections that might have prevented recent fatal E. coli outbreaks; (3-Tomato) Set up a 40-85% increase in tomato prices for American consumers; (4-Bread) There are several ways (some listed under the next bullet) that he has used his pen against wheat farmers faced with the double whammy of flooding in their fields and high river levels that prevent their crops from reaching market. If the wheat farmers go out of business, what are you going to put your BLT on?
• The President removed federal rules on flood protection 10 days before Hurricane Harvey submerged America’s fourth-largest city, slashed funding for the US Army Corps of Engineers in his proposed 2020 Budget, and has threatened to veto the currently-pending flood relief bill–including its provisions for farmers–because it gives too much to Puerto Rico (which has so far received $11B, not the $91B he has claimed, versus the $120B prior administrations allocated to Hurricane Katrina relief). Above and beyond all that, he has forbidden the Federal Government from making any adequate provision for the increased flooding and rising sea levels that are readily observable. Even if you don’t accept that people are causing it, it still requires a response. Failing to do so will make America the Biggest Loser, too.
A classic rebuttal and most welcome.
I fear you are being too generous, deliberately riling you requires some level of self awareness, whereas GoeB shows none whatsoever, meaning that we can take everything he utters at face value.
In a word – Sociopathy. Not once do I remember him straying from the rigid, self-destructive line of bellicose denial.
Glad I don’t like tomatoes
“Trade wars are good and easy to win.”
So said Trump who is a failed businessman (just look at his record of business failures and bankruptcies), and who knows nothing about economics. Did he actually think China was not going to retaliate (Despite his “warning” China not to)? China is not some little contractor he can boss around like he is so used to doing. China is not some banana republic. China is the world’s second largest economy. I’m not saying China is an angel, but there are diplomatic methods of resolving disputes.
All of you who believe Trump’s hocus-pocus business math fail to understand that in trade wars any increased costs that companies incur are passed on to the customer (you). Not only that, but to cut costs as a result of these trade wars plants in the United States are shut down, Americans lose jobs, and those jobs are moved offshore. Harley Davidson lost a billion dollars in revenue last year because of Trump’s steel and aluminum tariffs.
Apple is Down almost eleven points today, and has fallen about thirty points in the last ten trading sessions, so clearly the market—the final arbiter of Trump’s disastrous trade-war decision—is not happy.
So will somebody out there, some Trump apologist, explain how this trade war is good? Or how it will end well?