President Trump said he isn’t concerned that Apple (NASDAQ:AAPL) has warned sales will fall short of expectations because of the trade dispute with China, an announcement that provoked a sell-off in the US stock market.
“No, I’m not,” President Trump said after he was asked at a White House news conference about Apple’s revenue warning this week.
President Trump claimed that Apple’s stock price has gone up about 100% since he took office
Fact is that Apple’s shares had risen 94% from its close the day before President Trump’s Inauguration through through 3 October 2018, and has fallen 36% from the highs.
President Trump has encouraged Apple CEO Tim Cook to build plants and more products in the US.
“Apple makes their product in China,” President Trump said. “China is the biggest beneficiary of Apple, more than us.”
Apple said China sales came in lower than expected in the Quarter ending 29 December when it revised its revenue estimate downward.
CEO Cook, citing weaker iPhone demand in China and fewer phone upgrades elsewhere, said sales will be about $84% in the holiday Quarter — as much as $9% less than prior estimates.
CEO Cook in a letter to investors Wednesday blamed the shortfall in trade tensions: “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.”
The stock gaped open down Thursday, marking a 6 year low.
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Have a terrific weekend.