Apple Inc. is headed for its biggest weekly decline this year as the iPhone maker’s profits are seen as particularly vulnerable to a flare-up in the trade war given its reliance on China for production and sales. The shares were down as much as 9% for the week as of 10:45 a.m. in New York Friday, while the S&P 500 slid as much as 4% this week. Apple has shed about $75 billion of market value since last Friday, a slide that takes it even further away from the $1 trillion valuation it appeared close to reclaiming earlier this month. An escalation in the US-China trade war that culminated this week with the US raising tariffs on $200 billion in goods from China has been particularly troubling for Apple investors. Morgan Stanley on Thursday estimated that in a worst-case trade scenario, Apple could see its earnings drop by nearly a quarter, or $3 per share.

Source: Mint May 11, 2019 08:03 UTC