Apple's stocks have turned bearish since November 20, 2018 and now are 37.68 percent lower than its historical high of 232.07 US dollars per share set on October 3, 2018, despite over 1.7 percent of rebound in the early morning session on Friday amid an overall rise of USA stock markets.
Claiming that Apple mostly makes its products in China, Trump told reporters at a White House news conference that he does not fear the impact of Apple's stock on the usa economy, CNBC reported on Friday. Consensus estimate from FactSet showed analysts predicting a $91.3 billion revenue. The official results are scheduled to be released January 29.
Trump added that he had encouraged Apple CEO Tim Cook to build plants and more products in the US. President Donald Trump has also raised new tensions between the US and China by imposing tariffs on more than $200 billion in goods, although so far the iPhone hasn't been affected directly.
China's slowing economy has been a prime factor in the extreme market volatility of the past several months.
Economic deceleration in China had caught Apple off guard and trade tensions between Washington and Beijing were starting to hurt consumer spending on smartphones in China, Apple Chief Executive Officer Tim Cook said on Wednesday. While macroeconomic challenges in some markets were a key contributor to this trend, we believe there are other factors broadly impacting our iPhone performance, including consumers adapting to a world with fewer carrier subsidies, USA dollar strength-related price increases, and some customers taking advantage of significantly reduced pricing for iPhone battery replacements.
"In fact, most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad", said Cook. Apple's troubles may have ripple effects on other technology companies, given investors have been bailing on the industry in recent months. The Russell 2000 index surged 47 points, or 3.6 percent, to 1,378.
Cook's letter serves as a stark reminder of the company's new normal: If you want to believe in Apple now, it's no longer because of iPhone sales, but despite it. "No one expected China to just fall off a cliff like this".
The February crude contract was up 87 cents USA at US$47.96 per barrel after a report that U.S. crude inventories remained essentially unchanged.
The market slide and the Apple shock "hammer home the message that a trade war will be damaging to the U.S. economy", he said.
But outsiders will find it harder to see how that's working out.
But some analysts cautioned that Apple's troubles may be more company specific than global in nature.
As Bloomberg columnist Shira Ovide noted in a piece titled "Apple's iPhone Warning Comes Years Too Late", Apple has also tried to ignore the bigger reality about smartphones. Berkshire, which owns more than 250 million shares of Apple, dropped 5%. Some pessimistic economists have even projected an imminent global recession.
An iPhone XS, from left, iPhone XR and the iPhone XS Max can be seen in NY. As per those reports, Apple's stock (NASDAQ: AAPL) has [and continues to] be battered by a barrage of negative news citing slashed iPhone sales, production and overall outlook, which as of Thursday morning have collectively knocked 39 percent off AAPL's value.
Before Cook's disheartening bombshell, Wall Street was expecting Apple's fiscal Q1 profit to rise 20% to $4.65 a share.