Trump’s tariff threat leads to Apple’s fall
Briefly lost title of world’s most valuable publicly traded company
SAN FRANCISCO— Apple Inc. continued its downward slide on Tuesday after U.S. President Donald Trump suggested that 10 per cent tariffs could be placed on mobile phones, like the iPhone, and laptops made in China.
The shares, which have lost about a fifth of their value in a tech market rout since October, were down 52 cents to $174.14 (U.S.) Tuesday afternoon in New York. On Monday, Apple briefly ceded its crown as the world’s most valuable publicly traded company to Microsoft Corp.
The company is already facing reports of suppliers cutting forecasts, signalling the new iPhone models introduced in September aren’t selling as well as anticipated. Trump’s comments to the Wall Street Journal that he may include Apple’s signature product in another round of tariffs on Chinese imports are another blow for chief executive officer Tim Cook.
“Maybe. Maybe. Depends on what the rate is,” the president said, referring to mobile phones and laptops. “I mean, I can make it 10 per cent, and people could stand that very easily.” Apple stock fell about 1.6 per cent in extended trading Monday following the comments.
The U.S. is due to raise import duties on about $200 billion worth of goods from China to 25 per cent from 10 per cent on Jan. 1.
The majority of iPhones and other Apple products are built in China and then exported globally. Apple couldn’t be reached for comment.
Some analysts said the comments may shake investors. With consumers “clearly price sensitive” and the average sales price of an iPhone reaching almost $800, “the last thing Cook and investors want to see is additional tariffs added to iPhones and impacting demand drivers at this crucial growth juncture for the company,” Daniel Ives, an analyst at Wedbush Securities, wrote Monday in a note.
The price of an iPhone ranges from $449 to $1,449 in the U.S., including older models such as the iPhone 7 that Apple still sells.