“The uptick in trade hostilities between Washington and Beijing could threaten Apple’s bottom line in 2019 if the soured relationship impacts demand for iPhones in China, Credit Suisse warned clients,” Thomas Franck reports for CNBC. “For every 5% drop in Greater China sales, Apple’s earnings per share should fall about 15 cents, according to analyst Matthew Cabral.”
“Apple’s stock fell 6.9% over the week ended May 10, its worst in 2019, five days after President Donald Trump said on Twitter that he would increase tariffs on $200 billion of Chinese goods,” Franck reports. “(It was up 2.3% on Tuesday.) The stock, often viewed as a China trade bellwether, remains down more than 13% since the president’s May 5 tweet and more than 21% since its 52-week high notched in October.”
….of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!
— Donald J. Trump (@realDonaldTrump) May 5, 2019
Read more in the full article here.
MacDailyNews Note: In Q219, Apple reported quarterly earnings per diluted share of $2.46.
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And the day that Trump’s trade war goes hot, Apple will tank until it gets manufacturing going somewhere not affected by WWIII. As will a great part of the U.S.’s tech industry.
Trump is doing nothing but shooting himself and the rest of the country/world in the foot with his idiotic trade war. I don’t think that many people have thought this trade war through to its inevitable conclusion — which is not an agreement signed on Trump’s terms.
I’ve often wondered if there is a real point to Globalization that is actually good for non-corporate purpose. WWIII may well be it.
Now how do you stop a the civil wars?
Trump is pushing the lie that China is paying those tariffs. The tariffs are applied at the port (airport) of entry and is paid by the importer – like Apple. That tariff is applied to the cost of the goods and normally increases the cost to the consumers.
Some companies like Apple will hold retail pricing to pre-tariff levels but often the tariffs are passed consumers.
BTW, China has hit back with tariffs on US products, especially agriculture. Farmers in many parts of the country are suffering, but Trump downplays that problem he has created.
Trump calls this trade war a little tiff
His little tiff has cost me three quarters quarters of a million
this is how the obscenely rich get even more obscene
Screw Trump, but you losing money is your fault. You held, it’s gambling.