Apple CEO’s handling of the trade of war, have helped to buoy the shares, investors say

(Reuters) – Apple Inc., reports results on Wednesday, Wall Street was expecting a flat fiscal fourth-quarter sales and a reduced full-year revenues compared to the previous year, mostly as a result of a decline in iPhone sales. However, Apple’s share price to all-time highs in the past few weeks, as the price-to-earnings valuation.

FILE PHOTO: Apple CEO Tim Cook arrives to the world premiere of Apple’s “The Morning Show” at Lincoln Center in the borough of Manhattan in New York City, united states of america, October 28, 2019. REUTERS/Eduardo Munoz

Investors and analysts also told Reuters that a large part of the explanation lies in the Apple’s Chief Executive Tim Cook’s skillful management of relationships in Washington, d.c., Beijing, and Wall Street.

Cook maintains affiliation with the AMERICAN President, when He, in the dining room with him, and the transfer of the company’s vision, at the rates and with the AMERICAN production. He has also continued to be a strong enough relationship with the Chinese government, in order to prevent Apple becoming a target of an express retaliation after the U.S. government moved to cut off Huawei Technologies Co [HWT.UL] Apple’s chief rival in the premium smartphone market in China with American technology.

Along the way, the Cook has convinced Wall Street that Apple is in the transition from the iPhone to a broader composition of the product, which includes streaming video, or even a credit card along with the accessories, such as the AirPods, and the Apple Watch.

Even investors who had been impressed by mr Cook’s business acumen – he was the mastermind behind Apple’s supply chain, and operations, under the late CEO Steve Jobs will be pleasantly surprised by the Cook’s ability to prevent the taking of lethal arrows on both sides of the U.S.-China trade war.

“Who would have thought he would have been able to use the cable needle, and make a deal with the president? It’s a show that is an incredible amount of nuance and the importance of emotional intelligence in order to do what is best for the company,” said Hal Eddins, chief economist, Investment Cos, and an Apple shareholder.

China continues to be a challenge for Apple. Sales fell to a strong start in the current fiscal year, when the currency fluctuations to put the iphone out of reach for many Chinese consumers. Apple’s price cut, which helped, but rival Huawei has had to share with you.

Apple’s share of the China market declined to 5.2% in the calendar third quarter, versus 7% a year ago, while the Smartphone, which will sell a lot more low-cost models, Apple does it, and saw its market share rise to 42.4% from 24.9% the year before, Canalys data showed.

“A year ago, we were talking about the price of pushback in China, as well as Stores fought, they had to overcome,” said Tom Plumb, founder of Wisconsin Capital Management, and an Apple shareholder. “Now, the real question is whether or not you’re seeing a cultural shift that could bode poorly for Apple.”

However, many Apple investors may have already priced in a loss of market share in China’s domestic competitors, in the long run.

“As an industry, it is worth looking into, you have to assume that, in the course of the period of time is going to be dominated by the Chinese national champions,” said Erik Gordon, a professor at the Ross School of Business at the University of Michigan.

Cook was also persuaded by the investors ‘ services, such as Apple TV, is coming next month, will boost sales. Investors have been optimistic, but that Apple will be able to be drawn from the use of, the fight for Hollywood talent hidden up against rivals such as the Walt Disney Co.

“We’re big advocates of spending huge amounts of cash reserves on the creation of content,” said John Ham, of the New England Investment & Retirement Group, Inc., and that has Apple’s stock. “But as long as they don’t have to get carried away and start using it to create oversized, outrageous, special offers, and then we would support them in working in this area.”

Report by Stephen Nellis in San Francisco; Editing by John Mitchell and Leslie Adler

Follow us

Don't be shy, get in touch. We love meeting interesting people and making new friends.

Most popular