Apple Stock News – Antitrust Probe Laws Ruins Mood for WWDC

Source: Apple Inc

The highly anticipated Apple Worldwide Developers Conference (WWDC) 2019 is happening as we speak, in San Jose, California. From 3 to 7 June 2019, apple fans will been given the latest tech updates and investors will be watching stock prices closely.

However, on Monday, 3 June, news broke that Apple was facing possible jurisdiction for an antitrust probe, causing major unrest for investors as stock prices fell that very day. Meanwhile, trade war tensions might be dissipating.

Antitrust Probe – A Toothache for Apple

Source: Bloomberg

On Monday, 3 June 2019, Apple stocks fell despite trying to put their best foot forward in WWDC. The US Department of Justice has secured jurisdiction to investigate Apple on antitrust probe concerns. Sources on Reuters, unfortunately did not specify what issues led to them wanting to pursue an antitrust probe.

Other tech giants such as Amazon, Alphabet and Facebook are also undergoing concurrent antitrust probes.

Apple’s stock fell by as much as 2.4% at $170.87 following a release on the report about the antitrust probe, despite being positive earlier in the day. By the end of Monday, Apple stock had rebounded slightly and closed at $173.30, with a drop of 1%.

WWDC – What’s the Latest News Mac?

Source: The Verge

On the other hand, in the WWDC 2019, Apple has announced some new and exciting updates, including a Mac Pro and Pro Display XDR, iOS 13 with a dark mode, MacOSCatalina and an operating system for the iPad called iPadOS.

iTunes will be cancelled and instead broken up into three apps; Apple Music, Apple Podcasts, and Apple TV. This is to cater to the new ways consumers buy and stream media.

They also announced the latest Mac Pro with the most up to date and powerful specs. However, it has gained a lot of traction for the wrong reasons as the design of the mac pro has ended up looking a lot like a giant cheese grater.

iPhone introduced a dark-mode for system menus and native apps. Whilst the launch speed for apps should be much quicker. With iPad’s new software updates, switching between apps will now be more seamless.  

Trade War Tensions Might be Dissipating

“The differences and frictions between the two sides in the economic and trade field will ultimately need to be resolved through dialogue and consultation.”

China’s Ministry of Commerce

Following the release of the statement in early June, investors can feel slightly hopeful. The Trade War tensions have been going on for months, putting investors and consumers on edge.

Any tariffs placed on Apple products will have an undesirable impact. According to analysts, every 5% drop in China’s sales will result in an earnings per share drop of about 15 cents. This is due to the fact that China is Apple’s third largest market and Apple relies on chinese workers for assembly of their products.

Source: Bloomberg

On 10 May 2019, the Trump Administration raised tariffs from 10% to 25% on $200 billion goods after failed negotiations. Three days later, China threatened to raise tariffs on $60 billion worth of US goods. With the escalating trade war tensions in the month of May, Apple Stocks have certainly taken a hit.

Goldman Sachs estimated that Apple’s earnings would fall by 29% if China were to retaliate against the US with a ban on sales of the iPhone maker’s products.

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