Apple warns trade war could raise costs, damp consumer confidence
The political uncertainty surrounding trade disputes and protectionist measures could also “have a negative effect on consumer confidence and spending,” Apple said in a filing with the US Securities and Exchange Commission
Apple Inc., the world’s most valuable company with a market capitalisation just shy of US$1 trillion, warned that global trade tensions could hurt its business if countries raise tariffs and adopt protectionist measures.
“Tariffs could also make the company’s products more expensive for customers, which could make the company’s products less competitive and reduce consumer demand.”
The political uncertainty surrounding trade disputes and protectionist measures could also “have a negative effect on consumer confidence and spending,” Apple said in the filing, without naming the US or China. The company’s shares jumped 5.9 per cent to US$201.50 as of Wednesday, valuing the company at US$973.2 million.
The warning comes as a reminder of the potential impact that a trade war may have on global companies like Apple, which count on China as a substantial market, manufacturing base and supplier of parts. The Cupertino, California-based company projected sales that beat analysts’ estimates on expectations that consumers will continue to snap up its high-end iPhones, wearable devices and use its digital services.