AAPL And Yuan

Yuan Trimmed

This week China 3x lower the value of Yuan, 

Tuesday, August 11 Yuan value trimmed 2%, 

Wednesday, August 12 yuan trimmed 1.6%, 

and Thursday, August 13th the value of the yuan again , Trimmed 1%. 

This is actually a currency war. And the biggest impact in China is iPhone price inflation . This may sound funny, but this is the easiest way to explain how the currency war takes place. and how it impacts the stocks in other countries.

The above is a chart of AAPL where since the beginning of 2015 the US dollar continued to strengthen against all world currencies. So what happens is the price of the iPhone is valued in USD, will become increasingly expensive.

Illustration

IPhone6 price is $ 1000

Yuan exchange rate of Y 6.2 / USD -> 1 iPhone6 Y. 6,200

Afther yuan devaluation, 1 USD is equal 6.4 / USD

So i Iphone6 is equal to 6,400 Yuan , Price in Yuan increase,

while Chinesse wages do not increase. 

So iphone sales in china, threatened down

Nowadays China is one of the largest markets iphone, devaluation of the yuan has a huge impact on the stock AAPL. And not just for AAPL, but for every Companies that sell goods to china.