As China causes the stock market to collapse all around, Apple’s Chief Executive Officer Tim Cook figured out how to make the most out of a bad situation. He sends an email that ends up giving the Apple stock a slight lift.
As uncertainty looms in the global economy, Cook makes a rather bold step by sending an email to CNBC’s Jim Cramer in the midst of the chaos. He explained that while the company almost never comments on movements in the Apple stock, he knew that things Cramer have been wondering about lately are the same concerns investors have.
Cook went on to explain that he actually closely monitors Apple’s performance in Chi na and even gets an update every day. He is proud to say that the company has experienced “strong growth” in the said market from July till August. Moreover, there has been significant increase in iPhone activations just during the past few weeks. What’s more, Apple’s App Store has had “the best performance of the year” in China just in the last two weeks.
Email pulls Apple’s stock up
Apple’s stock may have plunged to as low as $92. But Cook’s words may have managed to calm the storm a little as the stock rose to a high of $108. Meanwhile, Apple’s current stock price is $103.12.
Cook says that the future is looking good for Apple in China. He believes that market brings about an “unprecedented opportunity” for his company. Moreover, Apple is poised to capitalize on the expected growth of the middle class in the coming years.
China’s revenue represents both a relative growth and decline
According to Apple’s third quarter financial results, the company’s revenue in Greater China suffered a slight decrease of 21%, when compared to the second quarter revenue for this year. However, the Greater China revenue actually grew by 112% when compared to the third quarter revenue in 2014.
Cook may be questioned by the SEC
Cook’s email may have worked well for the company’s stocks, especially when Cramer read it on the air and CNBC tweeted it afterwards. But according to lawyers, MarketWatch consulted with Monday, Cook may actually find himself in some trouble with the Securities and Exchange Commission (SEC).
MarketWatch reports that the email may be in violation of the SEC’s fair disclosure regulation. This regulation looks closely on how traded companies disclose nonpublic information to a particular group of individuals or entities.
Thomas Gorman from law firm Dorsey & Whitney says Cook should expect to hear from SEC. Gorman explains they will look for context with regard to Cook’s China disclosure. Apple did not further comment, but the company had confirmed that Cook sent the email.