Apple Boss Cook jumped the markets

Apple Boss Cook jumped the markets




Excitement for more expensive iPhones is getting easier in China: Apple Boss Tim Cook in a shop in Shanghai

Apple has discounted sales expectations for important Christmas business. CEO Tim Cook is responsible for the US-Chinese trade dispute. But problems are also made of home. Perhaps Apple has signed its exaggerated price policy in China despite warnings.

Due to the weak business in: Trade dispute between two biggest economies attacks back on an American major group China has previously recalled Apple's sales forecast since the launch of the iPhone more than ten years ago. The group collapses on Thursday after the trading started more than 9 percent on Thursday, breaking the stock market value of approximately $ 50 billion in the air. Due to the global economic downturn Apple's entry into the stock market has fallen to global level.

Sales warning has also made its mark on the foreign exchange market. The value of the US dollar was significantly lower than the Japanese Yen, but in the Euro - in the meantime, the prices had risen sharply. Merchants talked of a so-called "flash crash", in which automated trading system is reinforcing the value deficit.

In the first quarter of the financial year (December 29th), the company expects that the turnover of 84 billion dollars, rather than the expected amount of 89 to 93 billion dollars. "We expect some challenges in the emerging markets, but we underestimated the economic recession, especially in China," wrote Chief Executive Tim Cook in a letter to investors on Wednesday evening. The California company recently acquired nearly a fifth of its sales in the People's Republic.

Cooks speculate about buyers' protest behavior


That is that Apple is not quite enough, analysts had previously doubted that once in November, their predictions would be reduced after some suppliers of the most valuable listed companies. Even Apple's CEO Cook had already warned at this time of slow growth in markets like Brazil, India and Russia, but China was not clearly involved in this category.

But recently, it became clear that trade dispute is leaving its mark on the Chinese economy. Industrial production was contracted in December for the first time in two years and China's central bank on Wednesday warned that economic growth could fall below 6.5 percent in the fourth quarter.

In the trade dispute, in which the United States and China had forbidden each other about tariffs of different goods, the apple product was not the goal of the Chinese government, Cook said the TV channel CNBC However, some Chinese consumers have deliberately decided to buy American products. Cook said, "But the big issue is the slowdown in the Chinese economy and the business tension that binds it."

In China, Apple is getting more and more competition from domestic smartphone manufacturers, such as Huawei. The group, which provides network equipment apart from cell phones, is under pressure in the United States. On suspicion that cell phones and networks can be a backdoor for espionage, the US has kept the group out of government contracts to create a telecommunications network.

Apple is paying even in China for its elevated pricing strategy

According to experts, but partly home is made up. Despite the indication that the Chinese economy is getting weak, the group stuck on its pricing strategy and relied heavily on expensive equipment. Strong dollar boosted the American group's smartphone and tablet prices in China.

There has been speculation for some time that Apple's new iPhone generation such as XR, XS and XS Max are bad with prices up to $ 1,650.

Advantages of profit from Apple suppliers such as the British chip maker IQE or the Lutumum had fed these fears at the end of November last year. James Cordwell, an analyst at Atlantic Equities, said, "The question for investors will be to the extent that Apple's aggressive pricing strategy has strengthened the situation and what it means for the group's long-term pricing power."

Recently the chief economist of Apple Investor Capital Investment Council, Hal Eddins, has regarded Cook's business dispute as reference to US President Donald Trump. "He could use turmoil in business for some of the mistakes made last year."

In August, Apple was the first American company to break the $ 1 trillion mark in the market. But since then, the stock is constantly winging. Apple was detected by software giant Microsoft in terms of stock market value and now it has overtaken online retailer Amazon

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