Apple sell-off no cause for concern says Trump
- Weaker iPhone demand in China and fewer phone upgrades elsewhere blamed for stock price fall in the US
US President Donald Trump said he was not concerned that Apple Inc. has warned sales will fall short of expectations because of the trade war with China, an announcement that provoked a sell-off in the US stock market.
“No, I’m not,” Trump said after he was asked at a White House news conference about Apple’s revenue warning this week.
Trump claimed Apple’s stock price had gone up “hundreds of per cent” since he took office. Apple’s stock price climbed 94 per cent from its close the day before Trump’s inauguration through to October 3, 2018 but has since fallen 36 per cent.
Trump added that he had encouraged Apple CEO Tim Cook to build plants and more products in the US.
“Apple makes their product in China,” Trump said. “China is the biggest beneficiary of Apple, more than us.”
Apple’s ‘darkest day’ sends a shudder through US markets, falling sharply amid fears for China economy
Apple said China sales came in lower than expected in the quarter ending December 29 when it revised its revenue estimate downward.
Cook, citing weaker iPhone demand in China and fewer phone upgrades elsewhere, said sales would be about US$84 billion in the holiday quarter – as much as US$9 billion less than previous estimates.
The announcement, after the market closed on Wednesday, sent shares down 10 per cent on Thursday – the company’s worst day in about six years.
Cook attributed much of the “shortfall” in the outlook to struggles in China that he pinned on the economy and “rising trade tensions” with the US.
“As the climate of mounting uncertainty weighed on financial markets, the effects appeared to reach consumers as well, with traffic to our retail stores and our channel partners in China declining as the quarter progressed,” Cook said on Wednesday in a letter to investors.