Microsoft’s stock was more valuable than Apple Inc, and that says a lot even if it’s only for a short while. Apple now is slowly recovering from losses.
Apple shares fell 1.77 percent last Monday, which was right after President Donald Trump spoke of tariffs that could be placed on laptops and mobile phones imported from China, where Apple products are manufactured.
According to President Trump, it is highly unlikely that he would change his mind on raising tariffs on more than $200 billion of Chinese goods to 25 percent in January 2019.
Manufacturing Apple’s products in the United States is unfortunately for them about eight times more expensive than it would be in China, where their rates at factories are at $8 per hour.
That loss wiped Apple’s stock market value by 1.35 percent which was gained during the official trading session.
Apple’s stock market value is now at $814 billion, compared to its previous $1.1 trillion.
Unfortunately, Global demand for smartphones has slowed down recently, as a 1-year old smartphone does not need replacements so soon.
And therefore Apple will take a while to recover from their losses.