“The uptick in trade hostilities between Washington and Beijing could threaten Apple’s bottom line in 2019 if the soured relationship impacts demand for iPhones in China, Credit Suisse warned clients,” Thomas Franck reports for CNBC. “For every 5% drop in Greater China sales, Apple’s earnings per share should fall about 15 cents, according to analyst Matthew Cabral.”
“Apple’s stock fell 6.9% over the week ended May 10, its worst in 2019, five days after President Donald Trump said on Twitter that he would increase tariffs on $200 billion of Chinese goods,” Franck reports. “(It was up 2.3% on Tuesday.) The stock, often viewed as a China trade bellwether, remains down more than 13% since the president’s May 5 tweet and more than 21% since its 52-week high notched in October.”
….of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!
— Donald J. Trump (@realDonaldTrump) May 5, 2019
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MacDailyNews Note: In Q219, Apple reported quarterly earnings per diluted share of $2.46.
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