Apple’s CEO sees optimism as trade tension between US and China lessens

Yves Herman | Reuters

Apple CEO Tim Cook delivers a keynote during the European Union’s privacy conference at the EU Parliament in Brussels, Belgium October 24, 2018.

Apple CEO Tim Cook said trade tensions between the U.S. and China have improved since late December, giving the tech giant “some optimism.”

“Of course you don’t know what will continue but I would also point out that seems to map to trade tension as well, that there is a bit more optimism in the air in January, or certainly I feel that anyways,” he told CNBC on Tuesday. “I’m encouraged by the comments coming out of both countries.”

Apple reported profits of $4.18 a share for its December quarter, a penny above the average analyst forecast as tracked by Refinitiv. Revenue of $84.3 million also slightly beat expectations. But projections for the second quarter are lower than anticipated, particularly in sales of iPhones.

Apple shares jumped in extended trading following the results.

Cook had warned earlier this month that iPhone sales were weakening because of slowing demand from China, the biggest smartphone market in the world. He told Reuters on Tuesday he was reexamining how Apple prices its iPhones outside the U.S., where dollar-denominated products are more expensive.

Earlier Tuesday, Treasury Secretary Steven Mnuchin said the U.S. expects to make “significant progress” with China in trade talks as the two sides meet this week.