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Apple Dethroned by Microsoft As Top-Valued Company Amid Tariff Fears

DrJR said:
Apple has learned a very costly lesson it seems - all eggs in one basket and such. These market readjustments are very much needed. China will come to the table like the other 70 countries so far……
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I don’t believe Trump when he claims that while also saying things like this: “I am telling you, these countries are calling us up, kissing my ass. They are dying to make a deal. ‘Please, please sir, make a deal. I'll do anything sir!’”

Why you believe his claims of 70 countries is a mystery.
 
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Velli said:
That’s how stocks work. They are not based on actual performance, but on expectations for future performance. Since the expectations for Apple is to earn less in the future due to these events, the valuation is lower.
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I didn’t pay attention in statistics lmao

It makes sense though.
 
jayducharme said:
I hope Tim is getting value from his $1 million donation. :rolleyes:
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Who was the SVP of Global Operations and then COO that moved 100% of Apple's manufacturing over to China 20 years ago? That was entirely Tim Cook. It was the move that lead to him to becoming the iCEO when Steve's health failed to the point he had to step aside, and then becoming the permanent CEO after Steve died.

Then Tim drove away any talent (most notably Ives) from Apple, leaving the company to coast on what Steve set them up with.
 
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CapitalIdea said:
I don’t believe Trump when he claims that while also saying things like this: “I am telling you, these countries are calling us up, kissing my ass. They are dying to make a deal. ‘Please, please sir, make a deal. I'll do anything sir!’”

Why you believe his claims of 70 countries is a mystery.
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I mean these are the same folks who likely voted for him so it’s not that much a mystery why they believe him lol.
 
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DrJR said:
Apple has learned a very costly lesson it seems - all eggs in one basket and such. These market readjustments are very much needed. China will come to the table like the other 70 countries so far……
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Most of the other countries we have heard about so far “coming to the table”, have come with a suggestion of a free trade agreement. Which is the opposite of what Trump wants, because a free trade agreement with a country you have a trade deficit with, will make the deficit worse, not better. This is the result of Trump saying one thing but meaning another. Most countries will not be able or willing to give Trump what he wants. Luckily China is so far putting their foot down, hopefully leading the way for others.
 
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DrJR said:
Apple has learned a very costly lesson it seems - all eggs in one basket and such. These market readjustments are very much needed. China will come to the table like the other 70 countries so far……
Click to expand...
Rule one: don’t negotiate with a maniac
Rule two: see Rule one
 
scorpio vega said:
I’m curious as why apples stock is falling bc this is all Trump not Apple. I could see if Apple had already announced that the prices were increasing.
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I think the world associates Apple with Chinese manufacturing more so than any other company. At this point anytime you think "Made in China" the first thing that pops into your head is the iPhone and Apple.
 
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scorpio vega said:
I’m curious as why apples stock is falling bc this is all Trump not Apple. I could see if Apple had already announced that the prices were increasing.
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The market is not picking on Apple.

Remember stock values are just how much investors think a company is worth. Apple is primarily a hardware company (by revenue) while Microsoft is primarily a software company. When we see similar companies or competitors leap-frog each other like this, it's generally because investors have shifted from one to the other.

Investors expect these Tariffs to stay and for them to force prices to increase significantly and for demand to fall in kind. Fears of a recession amplify that. A software company, like Microsoft, is more insulated from Tariffs. So all this is, is investors saying "I think a software company is a safer bet than a hardware company that produces hardware overseas."

They're not blaming Apple or punishing Apple. They're just acknowledging that Apple has a business that will likely be significantly impacted by Tariffs. Price points are a really big deal; and if companies aren't able to hit certain price points, demand for their products can fall significantly.
 
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gikku said:
will Apple cancel the iPhone 17 for 2025, or just the US release?
can they shift sufficient production to India and Brazil?
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Brazil has the baseline 10% tariff, India has a 26% tariff. Either way, you’re still paying a tax on the items manufactured overseas.
 
Velli said:
Most of the other countries we have heard about so far “coming to the table”, have come with a suggestion of a free trade agreement. Which is the opposite of what Trump wants, because a free trade agreement with a country you have a trade deficit with, will make the deficit worse, not better. This is the result of Trump saying one thing but meaning another. Most countries will not be able or willing to give Trump what he wants. Luckily China is so far putting their foot down, hopefully leading the way for others.
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But that's not what daddy Trump told me....and he would never lie...
 
scorpio vega said:
I’m curious as why apples stock is falling bc this is all Trump not Apple. I could see if Apple had already announced that the prices were increasing.
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Apple will have to do some combination of raising prices and reducing their margins to account for the tariffs; there is not enough margin on any of their products to absorb the entirety 104% tariff on Chinese imports. That will both reduce profitability and curtail demand in the US. The tariffs are also creating a wave of economic nationalism in other countries (see: Canada) that may depress demand for goods sold by US companies. The stock price is reflecting this likely scenario. If Trump were to suddenly say “Just kidding, no tariffs!” the stock would skyrocket, although it’s unlikely to go back to where it was because of the cloud of uncertainty this entire situation has created.
 
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The phrasing of this article "Apple dethroned as top valued company" is a classic example of modern journalism, which focuses relentlessly on the spectacle and the drama.

There is no practical value or meaning to who the top valued company is, yet phrasing it in this way generates emotion, discussion and engagement.

As such, these types of headlines are not actually meant to inform us but engage us.

Because at the end of the day, you and I are the product being sold here and these headlines are the carrot to get us to read, click, and comment.
 
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Apple's been keeping all their eggs in 1 basket for 20+ years by manufacturing 100% outside of the USA the Mac, iPad, and iPhone lines. As the iPhone and iPad started becoming monster sellers and hence a large piece of Apple's revenue, Apple should have done some manufacturing in the USA over the past 20+ years with Macs, iPads, and iPhones. But no. So now Apple is (it was inevitable during a 20+ year run) up a creek due to trade wars/tariffs and political unease.
 
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Aeronauts said:
The markets are looking forward. Apple is a growth stock. Tariffs will inevitably lead to higher prices at some point which could mean lower sales and slower growth.
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I'd call Apple a spiral death stock at this point. Trump seems to want tech to die so we can just all get back to being obedient coal miners (he really does want coal to make a comeback).

Buy AAPL when it hits $70.
 
I told you guys Tim's bribe was too little. You can barely buy eggs with a million dollars.
 
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It’s been obvious for a while now, that their SE Asia based supply chain was super vulnerable.

And they’re at loggerheads with multiple governments over their App Store policies, at no point have ever made any concessions with good grace & have (presumably) led said governments to spend a lot of legal money and time, fighting them.

Most developers dislike them for their continued demand to have a cut of any app based commerce transactions.

And did I mention the seismic shift that genAI is bringing and how behind Apple is with this, even in a position of strength (ie two weeks ago)?

No winning runs last forever. It’s just the way of things. So many empires, companies and sports teams seem to be unassailable … and until usually very suddenly, they aren’t.

And there’s a saying that on the way down you need a lot of friends. Apple in their arrogance seems have burnt all of their bridges with only a loyal customer base seeming to be a ‘friend’ of the company.

It’s sad that Apple is proving the Ancient Greek concept of hubris to be a truism.
 
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