Donald Trump handed Tim Cook a gift to start the week.
Apple Inc. (AAPL) shares rose firmly on Monday as investors reacted to a thawing of trade tensions between the U.S. and China, a move that would ease concerns for the manufacturing base of the world's biggest tech company.
Apple makes most of its tech hardware, including iPhones, Macs and Apple Watches, from manufacturing bases in the Asia region, including mainland China and Taiwan. China, the world's second-largest economy, also accounts for around 20% of the Cuptertino, Calif.-based company's quarterly sales, while around one third of all the 750 million-plus iPhones in use around the world are in the hands of Chinese consumers.
In fact, TheStreet's founder, Jim Cramer, argued last month that Apple had "the biggest target painted on its back" as a result of the brewing trade war between the two Superpowers because "we import a lot of phones and computers and components from China and many of Apple's products are assembled there."
"There are lots of ways this could hurt Apple: it could raise the cost of components, it could disrupt their supply chain or, worst of all, it could trigger Chinese retaliation," Cramer told his 'Mad Money' program on CNBC.
However, with Treasury Secretary Steven Mnuchin saying that multi-day talks in Washington have put trade war concerns "on hold", and China's state-run newspaper reporting that vice-Premier Liu He said the summit was "positive, pragmatic, constructive and productive", some of those immediate-term concerns appear to have abated.
Action Alerts Plus holding Apple shares rose 1.3% on Monday to $188.77. The stock's record price of $190.37 was hit on May 10.
Apple's China, Hong Kong and Taiwan revenue slipped to $13.024 billion -- from a record $17.9 billion --- in its last quarter, the company reported on May 1, but that figure was still up 21% from the same period a year ago, highlighting the importance of the market and the relationship between the world's most valuable company and the world's second largest economy.
"I'm actually very optimistic", about the prospect for trade talk between China and the U.S., Apple CEO Tim Cook told investors last month "I think history shows us that countries that embrace openness and diversity do much, much better than the ones that are closed."
"China and the U.S. have this unavoidable mutuality where China only wins if the U.S. wins and the U.S. only wins if China wins and the world only wins if China and the U.S. win," Cook argued on a conference call on May 1.
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