written by reader AAPL and the Yuan

By Anonymous Questions, January 23, 2013

I just came across this article(link below) that says Apple(AAPL)has a bigger risk due to further declines in exchange rate of US Dollar with Chinese Yuan.

It says ”Apple Stock Could Fall Further as Chinese Yuan Appreciates”

Can you please review and comment?

http://www.investopedia.com/forex/news/dailyfx/thebigrisktoapplestocknooneistalkingabout.aspx#axzz2IR2o1yVt

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Travis Johnson, Stock Gumshoe
January 23, 2013 10:10 am

I suppose that’s one risk, though selling in Yuan is also AAPL’s biggest growth market. The cost of production rises for essentially every consumer goods manufacturing multinational as the cost of operating in China rises, both in real terms and in dollar terms if the currency continues to move higher, so anyone manufacturing in China will have to manage through that. I think there are few companies that manage their supply chain and manufacturing relationships as profitably as Apple does, but certainly there are plenty of things that impact AAPL shares. I don’t personally consider the Yuan exchange rate to be the driving concern.

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danpreone
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danpreone
January 23, 2013 1:31 pm

Thanks Travis. In my stock portfolio, AAPL has a larger portion and after reading so many negative comments about AAPL recently made me nervous. Apple 4th quarter earnings today will give us some guidance I guess.

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Travis Johnson, Stock Gumshoe
January 23, 2013 2:05 pm
Reply to  danpreone

It’s a large position for me, too. I’ll be quite curious to see how the quarter went, but with such a cheap stock it would have to be really, really bad for me to want to sell.

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