A trade war with China has deprived Apple profits

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Photo: Arnd Wiegmann / Reuters

Apple for the first time in the last ten years witnessed a decline in revenue and profit, according to The Wall Street Journal, citing company reports.

Revenue compared to the first quarter of 2018 fell 4.5 percent to 84.3 billion dollars, profit was reduced from 20.06 billion dollars to 19.97 billion. The main reason referred to as sales slump in China — where revenue for the year fell by $ 5 billion (to 13.17 billion).

Previously, on 30 January, CEO Tim cook announced plans to cut prices on some flagship model of the iPhone in those countries, where the greatly increased rate of the dollar. Where exactly, he did not elaborate, but perhaps we are talking about Russia, Turkey, Brazil and China.

In early December of last year, Apple got a court order to sell the old model of the iPhone in China — 6S, 6S Plus, 7, 7 Plus, 8, Plus 8, and X. as a plaintiff was made by the company Qualcomm, which manufactures chips, she has accused Apple of violating patents.

That trade war with China may negatively affect the profit of the company warned back in August. In the report, Apple reported that “disputes in international trade can lead to higher tariffs and protectionist measures, which, in turn, negatively affect the activities of the company.”

Video, photo All from Russia.



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