Apple’s Stock Price Slump Not of Concern, US President Donald Trump Says
Even as Apple’s shares fell after it lowered its revenue estimate for the first quarter of fiscal 2019, President Donald Trump has said he is not bothered about the tech giant’s concerns, the media reported.
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 US economy, CNBC reported on Friday.
In a letter to investors on Wednesday, Apple CEO Tim Cook said that for the quarter ending December 29, the company now expects revenue of approximately $84 billion (roughly Rs. 5.8 lakh crores), down from the $89 to $93 billion it had previously projected.
Apple lowered its revenue guidance, which led to a fall in its stock, due to weaker than expected iPhone sales, particularly in China.
Cook acknowledged that the revenue shortfall in its guidance was partly due to China’s trade tensions with the US. The slowdown in the Chinese economy also impacted its revenue, he said.
“Apple was at a number that was incredible and they’re going to be fine. Apple is a great company,” Trump was quoted as saying.
Apple shares dropped 10 per cent following the iPhone maker’s warning late Wednesday, The Wall Street Journal reported on Thursday.
Trump said that China was the biggest beneficiary of Apple, more than the US “because they build their product mostly in China.”
“I told (Apple CEO) Tim Cook, who’s a friend of mine, who I like a lot, make your product in the United States,” Trump was quoted as saying.
Apple disputes the claim that it mostly makes its products in China. In a March 2018 interview to Recode’s Kara Swisher and MSNBC’s Chris Hayes, Cook said that many of the Apple product components are made in the US, even though Apple products are assembled in China.
Trump did praise Apple for investing $350 billion in the US, seemingly referring to the company’s announcement last January
Apple also announced in December that it would invest $1 billion in a new campus in Austin, Texas.