China’s decision to raise the tariffs on a number U.S goods (set to go effective June 1, 2019) after President Donald Trump threatened to raise the tariff on Chinese products came as a blow to the technology giant Apple, pulling down its stock by 6% as per reports in trading yesterday.
Many believe that the US trade war with China could disturb Apple’s business the most, primarily because the iPhone and many other of its electronic devices are assembled in Mainland China. China’s low-cost labor force and skill in manufacturing is the most cost-effective current option for Apple and moving out of the country would not only take time but would come with its share of possible execution risks.
Secondly, Apple’s customer base in China would be hit hard. China is Apple’s third biggest revenue generating market after America and Europe. Trade tensions between the two powers could hit the Chinese consumer sentiment and confidence leading to low sales on Apple products.
Apple CEO Tim Cook stated in an interview in January “It’s clear that the economy began to slow there for the second half and what I believe to be the case is the trade tensions between the United States and China put additional pressure on their economy,”
Dow 30 component Apple (AAPL) has revolutionized personal technology with the introduction of the Macintosh in 1984. Today Apple leads the world in innovation with iPhone, iPad, Mac, Apple Watch and Apple TV. Apple’s four software platforms — iOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay and iCloud. Apple’s more than 100,000 employees are dedicated to making the best products on earth, and to “leaving the world better than they found it.” To Learn more about Apple (AAPL) and track its ongoing progress at Vista Partners Apple (AAPL), Coverage Page.
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