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Global trade war leads to Apple’s massive losses
Global trade war leads to Apple’s massive losses
For the first time in ten years, Apple’s revenue decreased which coincided with the ongoing trade war between the United States and China. This coincidence is not accidental, as the lingering conflict between two world’s biggest economies had an adverse impact on the company’s performance. Reportedly, the total revenue of the technological giant shed 4.5% in the first quarter of 2019 in yearly terms and came in at USD 84.3 billion. At the same time, the profits declined from USD 20.06 billion to USD 19.97 billion. So, what is the reason behind deterioration of these statistics? The answer is simple: it is a rapid fall in sales in China. On a yearly basis, the profits in the Chinese market plunged by USD 5 billion to USD 13.17 billion. The company’s management is doing its best to solve this problem as soon as possible. Currently, Apple products are too expensive for consumers in some regions due to a difference in exchange rates. Prices are creeping up along with the rising US dollar. As a priority measure, Apple CEO Tim Cook outlined possible price cuts for some of the flagship iPhone models in the countries where the national currencies significantly depreciated against the US dollar. Mr. Cook did not specify what these countries are, but presumably he was talking about Russia, Turkey, Brazil, and China. Besides the large-scale trade war, court disputes also dent a rise in revenues. Late last year, the court banned Apple from selling old iPhone models, 6S, 6S Plus, 7, 7 Plus, 8, 8 Plus, and X, in China. The suit was filed by chipmaker Qualcomm that accused Apple of patent infringement. 

Published: 2019-02-08 09:12:30 UTC
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