Apple Inc. shares had their biggest one-day slump in more than two months amid the latest escalation of trade tensions between the U.S. and China.
The iPhone maker fell as much as 4.8% on Monday, its biggest drop since May 13. The shares have lost almost 9% over a three-day slump.
In the latest development of the trade war, China let the yuan tumble to the weakest level in more than a decade and asked state-owned companies to suspend imports of U.S. agricultural products.
“Apple’s sales in China may come under greater pressure” after the latest development, wrote John Butler, an analyst with Bloomberg Intelligence. He said that Apple products sold in China are priced in U.S. dollars, “suggesting weakness in the yuan makes its devices more expensive and could dent its margins.”
MacDailyNews Take: That’s roughly a $140 billion drop in market cap since last Wednesday.
Be fearful when others are greedy, and be greedy when others are fearful. — Warren Buffett, October 16, 2008
Mr President is a real life American nightmare. He thinks he can bully any country he likes. China doesn’t like it.
APPLfanbooy doesn’t know what he is talking about..
Well MrTrump, if you think that your policies are working, then please explain this trend:
https://tradingeconomics.com/united-states/balance-of-trade
For those like Trump who can’t read graphs:
Trade imbalance in 2016: approximately -41 USD billion
Trade imbalance June 2019: -55.2 USD billion
That’s right, in just a couple years Trump has turned away tens of billions per month in potential US exports with his policies and rhetoric.
You have burned bridges with every US trading ally and have triggered a major trade battle with China before strengthening ties with the rest of the free world. Dumb.
Who again doesn’t know what he is talking about?
Are u really that indoctrinate and shortsighted..
You guys think its the president that bullies China…
What planet are u living on.. how brainwashed can u be? Mind boggling!!!
Have you guys ever looked at the playing field and how skewed it has been toward China’s benefit ? Have ever considered the absolute thuggish behavior of China toward IP and level playing field.
All you brainwashed bigots….You got it absolutely backwards ..
The president is not the bully… the president is the one standing up to the bully.
You ignorant brainwashed fools are actually rooting for the Bully!.
Its mind numbing how the liberal cons have brainwashed the sheep into mindless followers.
Anyone with 2 cents worth of objectivity can see the bogus skewed trade relations between us and China..
Yet you guys are actually Rooting for China.. ? Wooooooowwwwww
Man the level of ignorance and indoctrination is scary..
Far far far scarier than any misconduct by Trump !
LOL. talk about brainwashed and bigoted.
Talk about Blind
i have glaucoma but have eye drops to take the pressure off my eyeballs. from 22 to 11. its good to be blue
In this case, Trump’s intentions are good, but his execution is highly flawed. Trump is like a bull in a China shop (pun intended), and the outcome will not be good for anyone.
“Mr. Truth” (or is that Trump?): I cited cold hard facts to show the results of Il Duce Trump’s policies. You response was to ignore those facts and blindly attack others as being “brainwashed”.
Get it through your thick scull that US Corporations chose this for themselves. They wanted the cheap labor and when faced with forced tech transfer and IP theft, they moved production to China anyway. Why are you not fuming mad about Fortune 500 corporate executives?
Moreover, why are you not proposing regulation that would stop the economic traitor behavior of these corporations so that US small businesses could compete on a level playing field with the fat cat multinational corporations?
Oh, that’s right … because the GOP, like the Dumbocrats, is beholden to corporate campaign donors — and yes, that includes Trump. How’s the Trump Tower Moscow coming along, comrade? Follow the money, trumptard.
Nobody is rooting for China. The IP theft has to end. Problem is, massively taxing US consumers while rewarding traitorous US corporations with a debt-busting tax reduction in 2017 has done, and will not do anything to stop China from doing what it is doing.
You, sir, need to seriously study global economics before accusing others of being brainwashed.
Ohhh boy… lala land it is!
point made. if have nothing meaningful to say, try to insult them
Who is rooting for China? I’m sick of a demented, Russian mob-tied, blabbermouth con man making knee-jerk decisions from day to day, creating complete uncertainty and instability in the markets.
https://www.marketwatch.com/story/now-its-getting-serious-us-import-tariffs-on-chinese-goods-heading-up-to-levels-last-seen-in-1930s-2019-08-06?mod=mw_theo_homepage
Moody’s Analytics raised their probability of a recession in the upcoming year to 50% specifically due to Trump’s actions and of course the predictable Chinese retaliation.
Nobody wins a trade war. If you want China to pay back for past sins, fine, we all do, how will putting the world into a recession accomplish that?
Trump’s current tariffs, which are only beginning to be felt by American consumers, are projected to shave 0.3% off the US economy. That may not sound like much to you, but protectionism by leading economies that compounded import costs plus currency manipulation driving weaker economies into crisis (some wrung dry by dictators while the free world stood by and did nothing) is exactly what triggered the 1930’s worldwide great depression. Economists estimate that the Trump Tariffs have cost US consumers about $72 billion thus far; future increases would put that well over $100 billion per year. That’s the biggest one-year tax increase in US history.
Xi will gladly wait until after the US election to even consider serious trade negotiations. Will American farmers, small businesses, and consumers shoulder the increased Trump Taxes until then? China decreased their agricultural purchasing from $19.5 billion in 2017 down to $9.1 billion in 2018. Want to bet how 2019 is going to turn out for the farm sector?
There has got to be a better way to expand prosperity to all people. By all people, I mean worldwide. The USA cannot ever be strong if smaller nations outside its Great Wall are suffering from the trade war even more. Protract this global trade spat and just watch as worldwide luxury goods sales dry up — and that includes China-made Apple products.
Add that into your file cabinet of “truth”.
Russian troll bot much? Your KING appreciates your servitude. Bow when he enters.
I wish the traitorous sociopath would hurry up and have a brain aneurysm and be done with it.
some random notes:
there is a serious IP issue with China, which hasn’t been dealt with a long time
but the negotiations has to do with more than IP, it also includes the supposed ‘trade imbalance’.
First of all no country in the world has 50-50 import/export with USA. USA imports more from some countries and exports more to others. For example USA exports 14 billion more to Australia than it imports.
Secondly possibly the China trade imbalance is exaggerated.
For example:
The TOTAL cost of the iPhone is factored into China’s exports, i.e part of the ‘imbalance’.
Yet many of the components of the iPhone like the OLED screens, the gorilla glass (Corning), the chips (Apple, Arm , Intel, Qualcomm etc) and many others are NOT Chinese. The China component some estimate is like 10% of the price. Foxconn assembly costs is something like $5 a phone.
But as I mentioned the TOTAL cost of the iPhone, including the USA (Korean, Japanese, European) made parts, are factored into Chinese export numbers.
So the impression of Chinese trade imbalance to the tune of hundreds of billions might be skewed.
Also when ‘China made’ iPhone is sold the profits mostly go to USA and not China.
As for protecting USA workers. The desire of Americans for Foxconn type assembly jobs is exaggerated.
There are millions of factory jobs in USA which can’t find workers. It’s actually a crisis, the problem of getting factory workers in USA. The Mac Pro factory at the start suffered from getting workers and production was slow for months.
Don’t believe me, google it.
The Manufacturing Institute:
“In the next 10 years, they expect 4.6 million new manufacturing jobs to be created, 2.4 million of which will remain unfilled because of a skills shortage.”
Estimated 2.4 million job openings vacant !
Companies are offering reasonable wages for blue collar work, Walmart is giving $90,000 for truck drivers and they can’t find enough.
article:
“Amid a mass nationwide truck driver shortage, Walmart has upped the ante by raising driver salaries to $87,500 a year, on average, beginning this February, in a bid to attract the hundreds of workers it needs to fill out its fleet in 2019.”
How many Americans do you think want to work sitting on a bench turning screws with magnifying goggles 8 hours a day if they don’t want to drive a truck for 90k ?
The idea of ‘lack of blue collar jobs’ is an illusion. We should admit that USA workers have simply moved away from some jobs.
Also:
PERHAPS WE SHOULD LOOK AT THE UNEMPLOYMENT NUMBERS and BLAME CORPORATIONS LESS and BLAME STUFF LIKE … THE EDUCATION SYSTEM more.
IN 2017 USA was ranked (by PISA) 38 in Maths and 31 in Science in schools among 71 countries.
It has one of the worst PRIMARY education systems in the developed world (Look I’m not talking about elite USA schools like MIT, Caltech, just the schools Blue Collar workers come from ).
Years back Steve Jobs had already complained about it, saying we should fire incompetent teachers, as ‘our children is too precious a resource’. He was asked to APOLOGIZE by the teachers union.
My wife has a masters in Education, going around with her, I’ve seen kids at the 6th grade who can’t read simple words like ‘the’. A significant percentage (like millions) of American students are functionally illiterate and have zero maths ability. Simple truth.
No matter how much you blame corporations these people will not have an easy time with jobs.
Lastly, tariffs on Apple hurts China leaders very little.
Foxconn is a TAIWANESE company. The CEO Terry Guo recently ran for the presidency of Taiwan and made anti China comments in the process.
I doubt Xi Jiping is particularly concerned Terry Guo is hurt.
As for Foxconn workers, last I checked unlike American workers , they can’t vote Xi out of power.
China has grass roots elections where you can vote for your local (Communist party) reps but you have very little control of the higher ups of government.
So Xi is concerned about workers jobs but less than Americans would assume.
The Apple share price roller-coaster. The stock can’t maintain any share price gains. It goes up slowly but it can drop in the blink of an eye. Yeah, someone was saying that Apple shouldn’t be hurt seriously by tariffs. Maybe yes, maybe no, but big investors aren’t taking any chances and are happily dumping Apple stock so they don’t take those large Apple losses. As one of the major tech companies, Apple is taking the biggest losses over the past week or so. Where did all the gains from earnings go? Down the toilet. I’m not worried but I am annoyed. Whatever Apple tries to do to prevent Apple stock from being so volatile, it definitely is not working or should I say it doesn’t seem to be working. Apple stock may have a relatively low P/E but it’s still too high for Apple to maintain. What a weak stock.
I’m a long-term Apple shareholder so I’m not being hurt by the drop as I’m not selling my stock and mainly depending upon those quarterly dividends to pay my bills. I’m just pointing out the facts. Apple is being hit relatively hard and much harder than any of the FANG stocks. None of the FANG stocks have taken a 5% hit. NVidia and SOHU took worse hits but I don’t own either of them. Cook just put too much reliance on China for revenue and its coming back to bite the company. I’m sure the stock will recover again, as usual, because that’s how roller-coasters are. I’ve said my piece and now I can get on with what I was doing before I saw the stock collapse. Pfffft.
A nice article for Apple. Something positive to read and why I won’t be dumping my Apple stock like those other fools are doing:
https://finance.yahoo.com/news/apple-inc-nasdaq-aapl-passed-100837667.html