Apple Says Slowed Growth in China Due to Trade Fight Hurting Revenue
Slowed growth in China reduced Apple's revenue in its fiscal year 2019 first quarter, Apple CEO Tim Cook said in a letter to investors. "While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of…
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the economic deceleration, particularly in Greater China," the company said. "In fact, most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad." The company believes the "economic environment in China has been further impacted by rising trade tensions with the United States," Cook said. The Information Technology Industry Council said Apple's news shows how the trade war can hurt U.S. interests. "Tariffs are a direct threat to American workers and companies, hindering economic growth and slowing hiring for tech and other sectors," said Josh Kallmer, executive vice president of policy at ITIC, in an emailed news release. "As long as tariffs are in place, companies of all sizes and their customers will continue to be hit with negative impacts. We urge the Trump administration to continue its critical negotiations with the Chinese government and work toward a long-term solution that rolls back tariffs, changes China’s unfair trade policies, and ends this mutually damaging trade war.”