China and U.S. to hold trade talks in Beijing next week

Apple sells less iPhones than predicted due to Chinese trade war and cheap replacement batteries

Apple's shares tumbled 8.8 percent in premarket trading after the iPhone maker slashed its holiday-quarter revenue outlook due to slowing iPhone sales in China, sparking fresh concerns over the fallout from the Sino-U.S. trade war ahead of the U.S. earnings season.

Kevin Hassett, a top economic adviser to the president, acknowledged Thursday that the trade war is damaging USA businesses that have interests in China - and "a heck of a lot" of United States companies will have the same problem as Apple unless a deal is struck to lift tariffs.

Natural resources stocks have been among those worst hit by ongoing trade disputes between the USA and China. "I think we will make a deal with China", Trump told reporters at the White House after a meeting with Democratic and Republican lawmakers.

"Apple makes its product in China". Even before then, local rivals like Huawei had been gaining market share over Apple.

But China isn't Apple's biggest issue, according to a new analysis from CLSA, who points to the iPhones' average selling price and rising competition as the "real problems." .

The Trump administration, which has touted exuberant U.S. markets as a sign of its success through most of its first two years, has sought to put a positive spin on the recent slump. Apple stock, which was trading above $230 per share around three months ago, closed down the trading day at $142.19, its lowest price level since July 2017.

"(That's) nearly three times as expensive as phones from other vendors that are filling the mass market". "China is the biggest beneficiary of Apple. because they build their product mostly in China".

Trump holds firm on border wall; offers steel option as compromise
A White House official said the meeting included a briefing on border security by Homeland Security Secretary Kirstjen Nielsen. The tweet continued to say that "we are now planning a steel barrier rather than concrete", and called it a "good solution".

Statistics show that in the first 11 months of 2018, Apple's shipment of smartphones fell by 1 percent, in sharp contrast to Huawei and Xiaomi's increase of 28 percent and 9 percent, respectively. Apple estimated that it would make $91 billion over the last quarter, but has since revised this to $84 billion in revenue, with a gross margin of 38 percent.

As Bloomberg columnist Shira Ovide noted in a piece titled "Apple's iPhone Warning Comes Years Too Late", Apple has also tried to ignore the bigger reality about smartphones.

Volume on U.S. exchanges was 7.80 billion shares, compared to the 9.18 billion average for the full session over the last 20 trading days. Only 16 of the stocks in the S&P 500 index were negative. The yield on 10-year U.S. Treasurys, meanwhile, was last up to 2.584% from 2.557% late Thursday. Trump said on Friday he wasn't concerned about Apple's revenue warning. And a number of key components also come from American companies.

Cook in November had cited slowing growth in emerging markets such as Brazil, India and Russian Federation when Apple gave first-quarter sales estimates that were lower than expected. But Cook specifically said he "would not put China in that category" of countries with troubled growth. By contrast, Qualcomm Inc. only posted 603 million dollars of revenues from the United States. [MKTS/GLOB] Developments in a patent dispute between Apple and Qualcomm in Germany also rattled investors.

"China's not doing well now".

"The question for investors will be the extent to which Apple's aggressive pricing has exacerbated this situation and what this means for the company's longer-term pricing power within its iPhone franchise", James Cordwell, an analyst at Atlantic Equities, told Reuters. Revenue from this services category hit almost $10 billion in the three months ending in September, an impressive figure and an increase of 17 percent from the same period a year ago.

But some investors were heartened by Apple's plans on using its cash pile.

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