A state-controlled Chinese newspaper suggested that a “naive” trade war led by Donald Trump could hurt U.S. brands, including Apple.
President-elect Trump previously said he will put in place a 45 percent tariff on Chinese imports as a form of taxation to “stop [China] cheating” through currency manipulation.
The Global Times newspaper, however, warned that aggressive tariffs would result in “tit-for-tat” countermeasures, designed to hurt American companies doing business in China.
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“A batch of Boeing orders will be replaced by Airbus. U.S. auto and iPhone sales in China will suffer a setback, and U.S. soybean and maize imports will be halted,” the newspaper noted. “China can also limit the number of Chinese students studying in the U.S.”
Tim Cook has been clear about his belief that China represents Apple’s future biggest market.
However, in the past Apple has been subject to punitive measures from the Chinese government, such as being removed from a list of high tech devices that public money is allowed to be spent on. Apple also suffered a blow when the Chinese government decided to force the company to shut down the iBook Store and iTunes Movies service in the country.
While Cook has made repeated visits to China — alongside multiple investments by Cupertino — there’s no doubt that a crackdown on Apple products would have a big impact on the company’s valuation.
Earlier this year, super-investor Carl Icahn dumped his Apple stock due to concerns about the instability of its success in China. “I don’t think it’s a price point [that would get me to go back into Apple stock],” Icahn told CNBC’s Scott Wagner. “I think it’s my opinion about what is happening in China…. I got out because I’m worried about China.”
If punitive actions wind up being taken against Apple, no doubt other investors would follow Icahn’s example.
Via: The Guardian
Luke Dormehl is a U.K.-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Apple Revolution and The Formula: How Algorithms Solve All Our Problems … and Create More, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme and other publications.
12 responses to “Donald Trump’s trade war with China could hurt iPhone sales”
I’m already loving this. Time to for Tim Cook to focus on making Mac desktops and focus more on American people.
One: the desktop is dead. Notebooks, phones and tablets are the new kings.
Two: Who do you think makes the PARTS that make up a Mac desktop? Even if they assemble the here, the parts are still made in China and will cause Macs to skyrocket in price.
Trump just tells people what they want to hear, with no thought about the consequences of these actions.
1) desktop is not dead. If it was, Apple would discontinue with that.
2) you think you know how to run the country?
PC, you’re a dope. Read a book now and then.
Hey dickhead..shove a mbp up your ass till your emoji face becomes 4K.
Ah, now there’s the kind of comment I •expect• from a 10-year-old. Good to know my low expectations of you weren’t in vain.
Right…so get lost.
And join •you• in the land of the lost? No thanks, I’m happy living in a healthy, positive reality. But thanks for the offer.
It doesn’t seem that way. You’ll be more happy when you live in the land of lost.
What things •seem• like or don’t seem like to you couldn’t interest me less. But hey, thanks for offering to improve my lot. Fortunately, all is fine here, except for this: like the •majority• who voted in this election, I hate to see a vulgar, narcissistic and very unstable dope assume the highest office, on a course certain to undermine the very essence of our 240-year-old Republic. I understand that •you• don’t understand or care, but thankfully most of us do. Q.E.D.
With your buddy Rump, we’re all lost. You just don’t know it yet. Maybe your dad can explain it to you.
“Donald Trump’s trade war with China could hurt iPhone sales”
•Could• hurt iPhone sales? This protectionist a$$h0le can wreck •all• tech companies, put tens of thousands out of work, and set back innovation for years.
Most of the steel in Rump’s buildings comes from China, as do many of the clothes in his so-called “fashion” clothing lines. His companies trade with many companies, including Mexico, but he’s so ignorant of that fact that he would risk long-standing, complicated and important trade deals with our biggest trading partner, just to fulfill his xenophobic ambitions to wall off America, both literally and economically. In a world where sales success depends on manufacturing costs, labor costs, advertising, innovation, and competition from all quarters, der F¨ührer Trump would care not one whit if it all comes to a grinding halt, simply to pretend to make good on his specious and inane campaign promises.
Donald Trump is not a President, he is an ignorant, fascist dictator… a mere imitation of a human being. While important to my Apple Stock and yours, perhaps, iPhone sales are the •least• of America’s and the globe’s worries with this hideous person at the top.