The year 2019 resulted in a drastic slow down in the tech world of China when the CEO of Apple Mr. Tim Cook made some comments yesterday, i.e., the 2nd day of the January. He commented about the reasons for additional pressure which is created due to the prevailing trade relationship between U.S. and China. It is revealed that the slowdown has been recorded at about .487% in Chinext composite; and about .454% in Shenzhen composite. In fact, the Shenzhen composite has also faced a massive loss of about .447%; which has equally affected the share market in the tech world of China as well. Shenzhen Assemblers named Luxshare, and Suzhou Dongshan revealed a fall down of about 3.5% and 10%.
Cook’s comment was being published in almost all the channels and websites, and within a few hours, some Apple tech shares were also dropped down slightly. These indicators represent that the Chinese Stock markets are also facing a heavy thrust. Such a short-term sentimental comment resulted in a hard blow in the Chinese economic data when already the country’s manufacturing sector had started to shrink from the last month of December.
Why is Mr. Tim Cook responsible for Drastic Slowdown in The Tech World of China?
Being the CEO of Apple, Cook’s immediate comments also compelled Apple to cut its revenue guidance for the first quarter. According to Cook, the reasons for the ongoing tensions are; Lowered Guidance and Economic Weakness in Chinese revenue which is even lower than the expected iPhone revenue.
In addition to the interview, Cook says, “It’s clear that the economy began to slow there for the second half and what I believe to be the case is the trade tensions between the United States and China put additional pressure on their economy.” As a result, the Apple shares in Asia as a whole has also faced a sudden economic decline.
Asian countries which are directly attached to the Chinese share markets are suffering huge slowdowns currently. Hong Kong which is usually among the high-profit list of the Chinese share markets also got affected; By a 5.1% loss in the lens manufacturer Sunny Optical; and about 5.2% loss in acoustic components supplier AAC Technologies. Taiwan which had the most popular manufacturer Hon Hai Precision (Foxconn) has fallen to more than 1.8%; Pegatron by 1.4%. Again the most popular South Korean brand Samsung Electronics has also declined by 1.81% where the chipmaker SK Hynix dropped at 3.63%. The brand LG also resulted in a loss by .28%.