Recently, it looked as if Apple had come out unscathed. US President, Donald Trump abandoned after intensive editing by Apple CEO Tim Cook in the summer, provisionally, to show in China-made iPhones with punitive tariffs.
gets now, However, America’s flagship company, the consequences of the trade to feel the war with force. On Wednesday, Cook had to correct the sales expectations of the group down. The reason is that sales of The iPhone in China, is running significantly worse than expected, since the economy is in a tailspin.
“The trade tensions between the U.S. and China have put the Chinese economy under pressure,” said Cook in a Letter to the investors, the disappointing results for Apple’s first quarter of financial year 2018/19, which is gone at the end of December to the end of.
price slide of almost eight percent
The stock market traders were shocked on the announcement of the company that has allowed in the last 15 years, no such dramatic deviation from the guidance. The share price fell in after-hours trading 7.5 per cent and moved in with on the first dealing day in 2019, a number of suppliers in a Minus.
The bad new year mood in the markets is not surprising: China, with its consumer and brand lovers buyers for Apple, in the meantime, the third-most important sales market, and particularly thanks to iPhone sales. With over 40 shops and hundreds of millions of Smartphones sold, the group is considered by many as the most successful American companies in China.
But in the second half of 2018 have slowed down the economic growth in the emerging country, is suing Cook. In the third quarter, the official growth rate of China, the second-lowest in the past 25 years. And Apple noted with concern that in the stores, the customers failed to materialize.
Many observers had warned that the Chinese government could retaliate after the Trump instigated a trade war to Apple – but it is now clear that the US President himself has done the work of the counterparty. The weakness of the emerging market economy have led to “significantly greater than we have forecast,” said Apple CEO Cook.
trump’s China policy is not the only Problem
In Figures: quarterly revenue fell by seven billion dollars lower than it was even two months ago, in the middle of the estimated range predicted. Economic experts see in the profit warning by Apple as an alarm sign that should be on the group, and in the White house is: If the Chinese market falls, will suffer many US corporations.
But also, if Trumps has contributed to the trade war to Apple’s misery – Alone in his charge, he is not this time. The Dollar strength, declining subsidies in the Telecom industry for the buyers and the price cuts Apple for the battery replacement have also pressed on the result, as Cook admitted.
industry experts pointed out that the iPhone sales growth has slowed down and has been for some time, because the sector is saturated. The enormous increase in prices for new mobile phone models deter many consumers, each model of round to join. Apple has recently announced the sale will not have to pay more to put the iPhones in the future.
overtaken by Microsoft According to the passion of the stockbrokers for the technology is cool giants from the Cupertino, Calif. Apple had a company in August as its first US-the cracked A-trillion-Dollar mark in terms of market capitalisation, but since then nearly a third of its value lost. Many investors see today, two Times, before you place your order in the technology sector.
The “Faang”- the shares of Facebook, Amazon, Apple, Netflix and Google native Alphabet have left during the recent stock market turmoil springs. Apple has completed the year 2018, with a drop of almost seven per cent on the stock exchange to be the worst year since the financial crisis, 2008 experienced.
For Cook, however, the ultimate humiliation is likely to be something else: In terms of market capitalization, Apple is now fallen back to third place, behind Microsoft, the older rivals, the not too long ago, many people had declared dead.