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Trump again says Apple should change how it makes the iPhone

05 Janvier 2019

The price-earnings ratio of the Nasdaq 100 Index hit a four-year low below 20 last month, and Apple itself traded close to 12 times annual profit, more than 3 percentage points below the mean for the Dow Jones Industrial Average. One person familiar with White House discussions said the market moves were being used by advocates of a China deal to press their case with the president. The company is still doing great by most standards but since it's the iPhone and Apple, everyone has had their say, including the president of United States of America, Donald Trump. "Don't forget, Apple makes the product in China".

Of course, this massive drop in value has caused a stir on Wall Street already, with multiple investment firms and analysts weighing in on what the future may hold for Apple - especially as the tech-giant, itself, points to uncertainty in the likelihood of further iPhone market penetration.

Mr Trump, who last month called himself "Tariff Man", has said he wants a deal but that he would impose more tariffs if China failed to cede on key USA demands.

The price gap is one reason Huawei surpassed Apple in smartphone sales from April through September previous year to seize the No. 2 spot behind industry leader Samsung, according to the research firm International Data Corp. The euro fell to $1.1352 from $1.1391.

But other administration officials concede that falling stock prices may have weakened their hand, even as they grow frustrated that Trump's trade policy is getting the blame. Some pessimistic economists have even projected an imminent global recession.

Shares of Apple rebounded on January 4 after a 10 percent nosedive on Thursday on the revenue warning.

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.

Apple acknowledged that demand for iPhones is waning, confirming investor fears that the company's most profitable product has lost some of its luster. Costco Wholesale Corp. retreated as much as 2.3 percent in extended trading.

China's "economy began to slow there for the second half", Cook said during an interview with CNBC on Wednesday afternoon.

Cook acknowledged that the revenue shortfall in its guidance was partly due to China's trade tensions with the US. Plus, he doesn't think the Apple decline is a push back to trade tensions.

China's leaders have offered to narrow its politically sensitive trade surplus with the United States by purchasing more soybeans, natural gas and other American exports. Counterpoint reported iPhone sales dropped by 17% year-over-year during the third quarter due to the weak initial performance of the new models.

But the biggest problems came from lackluster sales in China and equally disappointing iPhone upgrades.

US aircraft manufacturer Boeing generated 93.392 billion dollars of revenues in 2017 with the Chinese market accounting for 12.75 percent of the total.

Beijing responded by imposing penalties on $110 billion of American goods, slowing down customs clearance for US companies and suspending issuance of licenses in finance and other industries.

"Market confidence and growth in 2019 is hanging by a thread", said Wang Huiyao, an adviser to China's State Council.

Trump again says Apple should change how it makes the iPhone