Markets Right Now: Stocks slide after Apple sees China slump

An Apple store in China

Modal Trigger Shutterstock

Earlier today President Trump's reply indirectly to Cook was that he doesn't fear the impact of Apple's stock on the US economy because Apple mostly makes its products in China. The iPhone X, which debuted in 2017, was Apple's most expensive iPhone ever coming in at $999. iPhone prices continued to climb as the company debuted the XS and XS Max previous year, with the former starting at $1,099.

Apple, which was until recently the largest publically trade company in the United States, is now worth less than Microsoft, Amazon and Google's parent company, Alphabet.

Japanese technology and electronics makers slumped on Apple's report that Chinese iPhone sales were slipping. South Korea's Kospi added 0.8 per cent to 2,010.25, while Australia's S&P-ASX 200 lost 0.3 per cent to 5,619.40. Cirrus Logic Inc. went down 2.91 points, or 8.49 percent, to $31.35.

The Nasdaq fell 164 points, or 2.5 per cent, to 6,500.

Also falling in premarket action were shares of Broadcom, down almost 4 percent, Qorvo, down more than 5 percent, and Lumentum, down more than 7 percent. In November, the company said it would stop reporting unit sales data for iPhones and other products.

Apple also cited steeper-than-expected "economic deceleration" in the world's second-largest economy and the downturn in emerging markets.

But Apple's new $1,000 iPhones are a hard sell to Chinese consumers anxious about the economic future, as trade tension continues between China and the United States. In an interview with CNBC on Wednesday, Cook said less subsidies from carriers also caused people to buy fewer iPhones, although he acknowledged it "didn't all happen yesterday". Apple intends to expand financing plans and streamline trade-ins of older models at its stores.

Indeed, to illustrate that risk playing out, Apple announced on January 2 that it wouldn't be meeting its original financial guidance for the first quarter of fiscal 2019, reducing its revenue guidance to $84 billion from a prior projection of between $89 billion and $93 billion. While this is still quite a large sum, the company expected to bring in revenue between $89 billion and $93 billion.

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The popular lawyer has shared his take on the viral situation and explained why a GoFundMe launch could make a difference. When the argument between the two heated up, Biandudi pulled out her phone to record the scene unfolding before her.

But the news raised questions on whether Apple - the first to reach a $1 trillion (roughly Rs. 70 lakh crores) valuation and until recently the world's most valuable company - is seeing a bump in the road or is starting to slide back from its leadership position.

The beginning of 2019 isn't proving to be as fruitful as Apple anticipated. "The trade tensions between the United States and China put additional pressure on their economy".

According to Nikkei Asian Review, the Chinese Communist regime is encouraging corporations to support Huawei. Experts say many Chinese consumers are likely to reject Apple's iPhone price increases and instead buy less costly models from competitors.

According to the Hindustantimes, Electronics manufacturer Shanghai Youluoke Electronic and Technology is subsidizing up to two Huawei phones per staff member.

China's Commerce Ministry said the talks will be held Monday and Tuesday in Beijing.

ILLEGAL ACTIVITY WARNING: "Investors Buy Apple (AAPL) on Weakness After Analyst Downgrade" was first published by Modern Readers and is the property of of Modern Readers.

A brewer in China's Henan province said it will provide employees and customers with free alcohol worth 30 percent of the price of a Huawei device upon presentation of a receipt.

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