Trump advisor weighs in on Apple; says iPhone sales will pick up when trade war with China ends



A couple of factors have created the weak sales environment in China for the Apple iPhone, which led Apple to cut its guidance on fiscal first quarter revenue. The U.S.-China trade war is one piece of the puzzle, as is the backlash to the arrest of Huawei CFO Meng Wanzhou on a U.S. warrant. Several companies in China are fining employees who buy an iPhone, and are subsidizing the purchase of phones made by Huawei or other Chinese manufacturers.

In addition, a court in China has imposed an importation and sales ban on the iPhone 6s up to the iPhone X after finding that Apple infringed on a couple of Qualcomm software patents. However, Apple is basically ignoring this ban, stating that the update to iOS 12.1.2 removed Qualcomm's software from the operating system.

Kevin Hassett, the current Chairman of the Council of Economic Advisers, has a position that makes him one of President Donald Trump's top economic advisors. As noted by Reuters, Hassett says that the slowing Chinese economy will affect all U.S. companies doing business in the country, not just Apple. Hassett agrees with Apple CEO Tim Cook, who said that "trade tensions between the United States and China put additional pressure on their economy." Hassett says that Apple and other U.S. companies operating in China, will see their business return in the country if the U.S. can have a successful negotiation with China. The adviser says that with the Chinese economy slipping due to the U.S. tariffs, it will put pressure on the country to agree to a trade deal with the Trump administration.


The U.S.-China trade war came about because of President Trump's controversial stand on the U.S. trade deficit between the two countries. As of July, the U.S. was running a $222.6 billion trade deficit with China. Instead of seeing this as a healthy sign that U.S. consumers are flush enough to purchase goods from the country, Trump looked at the figures as though they were on the scoreboard at a stadium and took them to be a sign that the U.S. was losing to China in some sort of contest. As a result, the president initiated tariffs that made certain goods imported from China more expensive to U.S. citizens, damping demand for these products. In theory, this should reduce China's trade surplus with the states. In practice, it raises the price that U.S. consumers will pay for certain goods.

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41 Comments

1. ahmadkun

Posts: 565; Member since: May 02, 2016

What if ?

2. someguy2261

Posts: 253; Member since: Feb 12, 2016

Wow you guys are pulling all the stops to try save your darling stock , it ain't going to work it's going lower and lower hahaha. Just give up already luck your wound and sell now.

3. mootu

Posts: 1500; Member since: Mar 16, 2017

" Trump advisor says iPhone sales will pick up when trade war with China ends" Sure, and Mexico will pay for the wall, not the US taxpayer.

8. TheOracle1

Posts: 2213; Member since: May 04, 2015

No one credible works for Trump. Without his money he'd be the local drunk propping up the bar with his mental conspiracy theories and Sarah Palin as the local town slut waiting for someone to pick her up.

4. cncrim

Posts: 1586; Member since: Aug 15, 2011

Sure everything Trump touch is turn sour, only idiot can trust traitor in chief.

5. Guaire

Posts: 885; Member since: Oct 15, 2014

Last time I checked Japan and Europe were not in China. And if they lost jobs due that hypothetic deal, Chinese people won't appreciate American brands IMO. Not the other way around.

6. all4dom

Posts: 17; Member since: Sep 30, 2013

It isn't China that's killing the iPhone sales.....its the iphone cost. Apples bread & butter is its phones...not iMac, iPad, apple tv, etc its the dam cost of the phone. They are way to.expensive. Tim cook needs to say the truth instead of making excuses.

9. whatev

Posts: 2202; Member since: Oct 28, 2015

Would you buy an iPhone if it was priced as you think it should be?

10. TheOracle1

Posts: 2213; Member since: May 04, 2015

Here you go again. LOL! Make a cogent argument instead of trying this crap. Would I buy an iPhone XS Max for $500? No. Because if I break the glass back it'll cost me $599 to replace repair. I sold my Range Rover Sport for the same reason because a headlamp costs more than some peoples rent. A Landcruiser made more sense for me.

11. whatev

Posts: 2202; Member since: Oct 28, 2015

Then why in the first place are you all complaining about the price of something you are not going to buy??? You don’t understand the point, am I complaining about the price of the galaxy note or the mate 20? No, I’m not even going to buy those then I don’t care about their prices, why are you all trolling something “you don’t care” and you are not buying??? I still don’t get it!

12. Vancetastic

Posts: 1103; Member since: May 17, 2017

Maybe it’s just considering a possible reason, and not necessarily complaining? Not everything is an “attack” on Apple, you know. Why take it so personally?

16. whatev

Posts: 2202; Member since: Oct 28, 2015

If actual iPhone users are not complaining about the price of those phones, cause I know many of my friends and other people who upgraded to the new iPhones last year (XS, XS Max) and they did it in a heartbeat without even looking at the price and not complaining at all, how can someone who is not even considering to buy the damn phone give an advice on how to do business to one of the biggest and most successful companies in the planet? I’m sorry, but to me it’s not an opinion, it’s a perfect opportunity to troll and your backing him, I don’t give a s**t how many iPhones does apple sell, I can’t stand people trolling just for the sake of it

17. Vancetastic

Posts: 1103; Member since: May 17, 2017

You might tell your friend midan to stop predicting the fall of Samsung then, or risk the “hypocrite” label being attached to you. Also, if your friends are buying things without even looking at the price, that says something, too, and it ain’t good.

20. lyndon420

Posts: 6737; Member since: Jul 11, 2012

He's just stating his opinion on why apple is having it's worst year since the original iPhone, but you don't like his opinion...which is totally fine. So question: what would you say is the main reason for apple's current downward streak?

21. Vancetastic

Posts: 1103; Member since: May 17, 2017

Judging from his comment, he doesn’t believe anyone has the right to comment unless they are an Apple user or plan to be one. It makes no sense to me.

26. sissy246

Posts: 7070; Member since: Mar 04, 2015

Agree He doesn't post much at all in Samsung articles and thats fine his choice, but he thinks just because he doesn't that other shouldn't post in apple articles and give their opinion. I thought that is what discussion boards were all about, discussing your opinion with others.

29. whatev

Posts: 2202; Member since: Oct 28, 2015

I think Tim Cook has said the reasons why iPhones sales fell short of expectations, can you explain this?https://www.phonearena.com/news/Apple-iPhone-activations-Christmas-day-record_id112393 https://www.phonearena.com/news/Apple-iPhone-Samsung-premium-smartphones-Q3-2018-report_id112336 And please don’t come with those conspiracy theories that those are lies, please come with something better, my experience can be anecdotal but for what I see everyday in my country (a developed one in Europe) I can sorta confirm those news

30. mootu

Posts: 1500; Member since: Mar 16, 2017

"I think Tim Cook has said the reasons why iPhones sales fell short of expectations" No he has partialy said what he can without commiting commercial suicide. Every major investor interviewed on US tv in the last 2 days has said Tim Cook is only telling a partial truth and is omitting that they made a boo boo this year over pricing. Do you honestly think Tim Cook is gonna sit there in a tv interview and say that maybe we went too far this year and overpriced our products? He would be out of a job before he got back to Cupertino. His interview and profit warnings letter were damge control to try and calm the markets (which didn't work).

31. whatev

Posts: 2202; Member since: Oct 28, 2015

Then explain why iPhones popularity have increased in developed countries, China is the biggest smartphone market so it totally makes sense

32. mootu

Posts: 1500; Member since: Mar 16, 2017

The "record" activations came from the US and Canada, Apples "traditional" markets. Do you really think a small downward trend in China's economy over 3 months would stop people from buying iPhones if they wanted them? China's middle class are people who can afford to buy iPhones and is larger than the whole population of the US, these people can afford to buy any iPhone they choose but are not doing so even though they have the money. It's down to saying enough is enough on price and also they are boycotting Apple to protest Trump's trade spat. BTW it's not all developed countries, iPhone sales outside the US and Canada are flat or falling.

34. Vancetastic

Posts: 1103; Member since: May 17, 2017

This seems like a possibility to me. We will likely never really know for sure.

36. sissy246

Posts: 7070; Member since: Mar 04, 2015

No , can't explain it at all since there are way more news articles about them not doing good. Well, its not that they didn't do good, just not as good as Tim was hoping. They still made killer money but lost 9 billion and that is a big chunk of money. The up side is they will bounce back so now is the time to buy stock.

13. Vancetastic

Posts: 1103; Member since: May 17, 2017

Uh, if you don’t own Apple products, you’re not allowed to comment on them. Didn’t you know?

27. htcisthebest

Posts: 435; Member since: Nov 15, 2011

I don't know about him, but I would not because iPhone is not as good as Android phones.

18. Vokilam

Posts: 1181; Member since: Mar 15, 2018

I 100% agree with all4dom. And I bake me a big fan of my iPhone X

22. Vancetastic

Posts: 1103; Member since: May 17, 2017

My wife and I are both iPhone users. We didn’t upgrade this year because....drum roll, please..... Price!

23. almostdone

Posts: 439; Member since: Sep 25, 2012

Some of my family who usually buy iPhones also didn't upgrade due to the price. This is also true for Samsung phones costing close to 1000. They don't think any phone is worth it for what you get.

25. sissy246

Posts: 7070; Member since: Mar 04, 2015

I do agree that most of the problem is pricing but, the trade war can't be helping any either. I believe if apple would have priced the xr at $650, the xs at $799 to $850 and the xmax at $999 to $1099 apple would have killed it.

7. all4dom

Posts: 17; Member since: Sep 30, 2013

Apples (& google) bigger problem is if there is a revolt by app developers (thanks epic & netflix) rebelling over the high cut both app stores get.id Microsoft is smart tjey are paying attention.

15. lyndon420

Posts: 6737; Member since: Jul 11, 2012

We need at least one or two more big players in the ring that can hold their own and maintain at least a ¼ - ⅓ of the public interest. Microsoft was supposed to be that player, but they bowed out after completely destroying Nokia's reputation in the cell phone market. Nokia (version 2.0) is making strides again, but no thanks to Microsoft. Maybe with their long rumored Surface brand...?

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