President stance comes as lowered revenue forecast of Apple crashed the market
President Donald Trump has urged tech giant Apple to relocate its manufacturing base from China to the United States.
The President stance comes amid the lowered revenue forecast of the Silicon Valley giant crashed the market, but Trump said isn’t concerned about it.
“Apple makes its product 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 told on Friday before adding that Apple should “build those big, beautiful plants” in America, as China is currently its “biggest beneficiary,” hosting the majority of its production.
“I want Apple to make their iPhones and all the great things they make in the United States, and that will take place,” Trump concluded.
But Apple later insisted that a portion of its components for its devices and made in the US, highlighting that people only focus on where the product is assembled.
China’ stock investors and forecasters saw dismal year plagued with unwelcoming downward curves amid the continuing trade war with the United States.
The benchmark Shanghai Composite Index fell below 25 percent compared to where it began this year and is now the poorest-performing major stock market in the world.
According to RT: Cook told media in March that many companies create components in a mixture of countries, emphasizing that it is “a misunderstanding… that they just see where the concluding product is assembled and say, oh, that is not done in the US.”
On Thursday, the US telecom giant and once trillion-dollar company lost billions of dollars of its value and crashed the US market after it slashed its revenue forecast earlier this week.
The announcement does not trouble Trump, however.
He told reporters that the company is “going to be fine” and added that it went “up hundreds of percent” since he took office.
Apple stock has indeed risen since January 2017, but its growth was around 20 percent.
Apple market value.
4th of October, 2018: $1139 billion
4th of November, 2018: $1037 billion
4th of December, 2018: $883 billion
Now: $702 billion
— The Spectator Index (@spectatorindex) January 5, 2019
As talks about a trade deal between the US and Chinese delegations loom, the American leadership is confident that its position is stronger.
However, the tit-for-tat tariff war put pressure on many US companies and big industrial stocks have gone down, Boom Bust’s Bart Chilton – a former commissioner at the Commodities Futures Trading Commission (CFTC) – explained to RT America.
“The Chinese are hitting us where it hurts, and that’s in our pocketbooks,” he told host Rick Sanchez.
According to Wired: Apple updated its earnings for the last three quarters of 2018.
It predicted $89 billion but is set to earn $84bn.
That $5bn shortfall represented a five percent drop.
But, in its typical histrionic style, share prices took a greater plunge, dropping by 10 percent after the announcement.
Despite Apple saying that sales in China went down partially because of the trade war, the company itself made mistakes on the Chinese market, and lots of lost revenue is Apple’s fault, the analyst believes.
“An average person there [in China] makes $10,000 a year, so you’re selling them a $1,200, $1,500 iPhone… when they could get a Huawei phone, that’s Chinese manufacturing, for 500 bucks with all the same bells and whistles that an iPhone can have, what do you expect?”