Trading of Apple shares halted late Wednesday, and rumors started flying. Turns out the tech giant lowered its Q1 revenue estimates by a shocking 7.6%, from as high as $93 billion to just $84 billion.
Hey, $84 billion still sounds like a lot of money, but the news sent the Dow Jones spiraling today. Markets are still open as of this writing, but the index had dropped more than 600 points by mid-afternoon.
But here’s the question: Why did Apple miss its projections by so much?
According to Apple CEO Tim Cook: Donald Trump’s trade war.
Here’s what Cook told CNBC late Wednesday:
“And what I believe to be the case is the trade tensions between the United States and China put additional pressure on their economy. So we saw as the quarter went on things like traffic in our retail stores, traffic in our channel partner stores, the reports of the smartphone industry contracting, particularly bad in November. I haven’t seen a December number yet, but I’d bet it would not be good either.”
He added in a letter to shareholders:
“We believe the economic environment in China has been further impacted by rising trade tensions with the United States.”
Of course, our ears are still ringing from Donald Trump’s March 2018 declaration that “trade wars are good and easy to win.”
Hmm, not if you’re a lifetime member of the working class staring down retirement as the market tanks.
Can someone remind us all what the point of the trade war is again?