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Around the World

Apple records $44 billion loss in market value amidst US trade war with China

Apple has had its market value reduced by $44 billion following the continued trade war between the United States of America and China.

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Apple, Apple seeks to obtain about $22.7 million USD from GEEP. The firm claimed some of its employees were responsible for the theft in its third-party suit

Apple has had its market value reduced by $44 billion following the continued trade war between the United States of America and China.

The President of the United States of America, Donald Trump was at the heart of this matter after he made an order to American Companies to look for an alternative to manufacturing that would exclude China. This move will greatly cripple Apple’s patronage in China where all the world’s iPhones are made.

What this means: Apple could witness an added 71 base points of gross margin pressure If Donald Trump carries out his threat to increase tariffs on U.S. imports from China.

Apple’s stock price took two big hits on Friday in the wake of Trump’s latest announcements. This new move came to Apple as a shock according to an analyst, David Ives of Wedbush Securities Inc. He stated that Apple might find it difficult moving its iPhone production out of China.

In a best-case scenario, Apple would be able to move away 5-7%% of iPhone production out of China over the course of 18 months. The company would require three years to move 20% out, which is still less than the 25% of iPhone production that Apple needs for its domestic U.S. market.”

[READ ALSO: OPEC’s Strategy hangs in the balance]

According to Ives, American tariffs on goods from China would therefore directly impact Apple’s biggest moneymaker and this move is a big blow to the CEO, Cupertino stated in his reaction to the ongoing developments.

Foxconn, Apple’s manufacturing partner, said it could help build Apple another manufacturing plant outside China but the process will take a lengthy period, in the light of all indications.

Sigma Pensions

Stumbling block 

  • Several people familiar with iPhone production have identified the impossible reality of relocating Apple based on the availability of skilled labour that Apple will require elsewhere.
  • The challenges of replicating complex production lines and necessary infrastructure are part of the major hurdles. While Apple moved to enlist new suppliers for proposals on ex-China production, there is still no sign the company will ever migrate. In one case, Apple rejected a location an assembler proposed outside of China. That move backfired and the supplier redirected his business to expand in China.
  • Even GoerTekt shift of its AirPods production to Vietnam was done by its own volition, people familiar with the decision said.

The bottom line: While China is still coming to terms with the order, the Chief Executive Officer’s (CEO) ability to lobby Washington for tariff relief will be tested over the coming weeks.

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He has only been able to obtain a temporary reprieve for iPhones, iPads and Apple laptops, which won’t be subject to U.S. tariffs until December 15. If nothing is done concerning this trade war, Apple will be left no choice than to leave China, no matter what it may cost them.

[READ ALSO: Ecobank leads this week’s gainers as NSE closes on a positive note]

 

Stanbic 728 x 90

Reincarnated as a lover of stocks, Angel investors, seed funds, and anything aligned to tech or startups raising money, Joseph's work at Nairametrics involves following the money to wherever it leads. Before joining Nairametrics, he won an investigative journalism fellowship with ICIR, appeared in several national dallies, with hard-hitting opinions, features and investigative pieces. He has also engaged in content marketing and copywriting for a top e-commerce firm in Nigeria.

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Around the World

Trump to return to social media with his own platform in 2 months

Over 2 months after he was banned from Twitter, Facebook, others, Donald Trump is working on making a return.

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U.S. budget suffers a deficit of $3.1 trillion in 2020, as pandemic slams the economy, President Trump to decide fate of TikTok in 24-36 hours, Vaccine, America's Trump finally bans TikTok, WeChat, US imposes visa ban on Nigerians for election-related activities, I am not going to do second debate - Trump

Former US President, Donald Trump, will be back on social media in the near future, over 2 months after he was banned from Twitter, Facebook, and others.

This follows plans by the former President to launch his own social media platform within the next 2 or 3 months.

This disclosure was made by Trump’s Senior Adviser, Jason Miller, on Sunday, March 22, 2021, during a chat with Fox News’ #MediaBuzz.

READ: President Biden revokes Trump’s ban for green card applicants in US

What Donald Trump’s Senior Adviser is saying

Jason Miller, who was a spokesman for Trump’s 2020 campaign, told the media network that the former President would soon get back to social media space with a new platform of his own that would completely redefine the game.

Miller, while talking to Fox News, said, “I do think that we’re going to see President Trump returning to social media in probably about two or three months here, with his own platform. And this is something that I think will be the hottest ticket in social media; it’s going to completely redefine the game, and everybody is going to be waiting and watching to see what exactly President Trump does.”

Although he did not provide more in terms of details, Miller revealed that Trump had been having high-powered meetings at his Florida resort, Mar-a-Lago, with various teams regarding the venture, and that numerous companies had approached Trump.

Miller said the new platform was going to be big, while also predicting that Trump would draw tens of millions of people.

Sigma Pensions

In case you missed it

  • It can be recalled that former President Trump was banned from Twitter after the January 6, attack on the Capitol by his supporters. He was accused of inciting his supporters after he rejected the US Presidential election result which he claimed was a fraud.
  • Twitter last week said it would seek public input on when and how it should ban world leaders, saying it was reviewing its policy and considering whether leaders should be held to the same rules as other users.

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Tesla investor sues Elon Musk for causing problems with his tweets

An investor in the US electric car maker, Tesla, has sued the company’s founder, Elon Musk over alleged erratic tweets.

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Tesla Investor Sues Elon Musk for Causing Problems with His Tweets

Elon Musk, the controversial multi-billionaire is being sued by an investor in his company. Musk is being accused by the investor of unsettling the markets and exposing his investors to high risk with his “erratic tweets”.

Chase Garrity an investor in the US electric car maker, Tesla, has sued the founder of the company for his erratic Twitter messaging which according to him, has exposed the company to high legal risks and billions in price losses.

The 105-page lawsuit was published in the US court of Delaware and it accuses Musk of violating the settlement negotiated with the US Securities and Exchange Commission in 2018.

READ: Battle of Titans: Elon Musk, Jeff Bezos share world’s richest title

The lawsuit also includes the entire Tesla board and its supervisory body for not calling Musk to order.

In May 2020 Musk caused a 14 billion dollar loss in market value on a single trading day with a series of unguarded tweets. He tweeted about Tesla’s market value being too high and how he was going to dispose of all physical assets.

The lawsuit stated that any further unbridled tweet from Musk would have dire consequences for Tesla’s future funding opportunities.

READ: Elon Musk gains $25 billion in a day, as Tesla surges by 20%

Sigma Pensions

What you should know 

  • Remember Nairametrics posted a story on how Musk tweets once again caused a serious ripple effect in the crypto world. His tweet helped Bitcoin gain $6000. He later invested heavily in Bitcoin.
  • Manager Magazine stated that analysts are not comfortable with such a move and view it as some kind of manipulation.
  • Musk in April last year posted a joke photo of Tesla going bankrupt. This once again unsettled investors.
  • Tesla Management has not released a statement on this fresh lawsuit.

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