Apple Has Biggest Drop in Two Months as Trade Tensions Escalate
(Bloomberg) -- Apple Inc. shares had their biggest one-day slump in more than two months amid the latest escalation of trade tensions between the U.S. and China.
The iPhone maker fell as much as 4.8% on Monday, its biggest drop since May 13. The shares have lost almost 9% over a three-day slump.
In the latest development of the trade war, China let the yuan tumble to the weakest level in more than a decade and asked state-owned companies to suspend imports of U.S. agricultural products. Wall Street analysts described the retaliation as “massive,” calling it an “11” on a scale of one to ten.
Apple has been particularly vulnerable to the trade tensions. Not only does it rely on China for key components of its supply chain, but nearly 20% of Apple's 2018 revenue came from the country, according to data compiled by Bloomberg.
“Apple's sales in China may come under greater pressure” after the latest development, wrote John Butler, an analyst with Bloomberg Intelligence. He said that Apple products sold in China are priced in U.S. dollars, “suggesting weakness in the yuan makes its devices more expensive and could dent its margins.”
To contact the reporter on this story: Ryan Vlastelica in New York at rvlastelica1@bloomberg.net
To contact the editor responsible for this story: Catherine Larkin at clarkin4@bloomberg.net
©2019 Bloomberg L.P.
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
