Quantifying just how much the trade war could hurt Apple

“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.”

Read more in the full article here.

MacDailyNews Note: In Q219, Apple reported quarterly earnings per diluted share of $2.46.

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