Tariffs Could End Apple’s Uptrend

Apple Inc. could pay a steep price for its carefully nurtured China connection if the Trump administration follows through on a laundry list of tariffs directed at the Asian giant. Retaliation may target iPhone components built in China as well as local sales, which comprised 24.3% of market share at the end of 2017. That move would also favor higher sales in locally built smartphones from competitors Huawei and Xiaomi.

The tariff scare has come at a bad time for the Cupertino, California-based icon, which is struggling to ramp up production and interest in the high-priced iPhone X. Disappointing fiscal first quarter sales contributed to a steep February decline that dropped the stock to a four-month low at $150. It has recovered since that time, but a recent breakout above the Jan. 18 high has now failed, possibly exposing another trip to the corrective low. (See also: iPhone 8 Rescues Apple From Sales Slump in China.)

Apple has failed two breakouts since January, while selling pressure under the surface has increased, raising the odds for a long-term top. …read more

Read more here: Tariffs Could End Apple’s Uptrend

Category: AAPL

Leave a Reply

%d bloggers like this: