Trump, Apple CEO to meet as US-China trade row roils tech sector

WASHINGTON - President Donald Trump will meet with Apple Inc Chief Executive Officer Tim Cook on Wednesday, as the technology industry finds itself in the crosshairs of a US trade spat with China, a manufacturing hub for the iPhone maker and other companies.

It was not clear what Trump and Cook planned to discuss, and representatives for Apple did not immediately respond to a request for comment. Representatives for the White House also did not immediately reply.

Apple and other hardware makers have deep ties with China, where they build most of their products for export around the world. Cook urged calm and called for more open trade after Trump announced he would impose tariffs on certain Chinese imports, and China retaliated with tariffs on US imports.

Trump has a tense relationship with the US technology industry, based in Democratic strongholds such as California's Silicon Valley and Seattle. He has clashed with the tech sector on a wide variety of issues including trade, immigration and the environment.

Cook, who attended Trump's first state dinner at the White House on Tuesday night, has publicly objected to the president's decision to end the Deferred Action for Childhood Arrivals, or DACA, and criticized the US president's comments after last year's violence in Charlottesville, Virginia.

US and Chinese officials have been working to resolve the feud between the world's two largest economies.

Trump in March vowed to impose about $50 billion of US tariffs on Chinese imports, prompting China to retaliate with tariffs on about $3 billion of US imports. Trump then threatened $100 billion in additional levies.

To reach an additional $100 billion, a Reuters analysis found Washington may have to target cellphones, computers and other consumer goods, prompting price rises at Apple Stores and other US retailers.

On Tuesday, however, Trump said there was "a very good chance" the two countries could reach a deal as a US delegation prepared to head to China in a few days.

(Reporting by Susan Heavey; Editing by David Gregorio)

source: news.abs-cbn.com

How much did Apple's CEO earn in 2013?

SAN FRANCISCO - Apple Inc CEO Tim Cook earned roughly the same in 2013 as in 2012, but lost part of his performance-based stock award during a year in which intense competition and margin pressure bludgeoned the iPhone maker's stock.

Cook took home $4.25 million, including a base salary of $1.4 million and a performance bonus of $2.8 million, roughly on par with 2012, the company said in a preliminary proxy statement on Friday.

But he gave up about 7,100 shares tied to an annual performance-dependent award, based on shareholder returns from Aug. 24 of 2012 to Aug. 25, 2013. Apple's stock lost a quarter of its value over that one-year period.

The company also advised shareholders to vote down a resolution by activist investor Carl Icahn, who proposed the iPhone maker buy back $50 billion worth of shares in fiscal 2014. It was the first time the company had publicly voiced its response to Icahn's demands.

Apple argued on Friday it has already returned $43 billion in dividends and share repurchases over the first six months of its roughly $100 billion capital return program.

The "dynamic competitive landscape and the company’s rapid pace of innovation require unprecedented investment, flexibility and access to resources," Apple said in advising shareholders to reject Icahn's proposal.

Known for decades of strong-arm tactics, including proxy fights, Icahn has repeatedly made it clear that his proposal is not a sign that he stands against Apple's management. The billionaire has discussed the issue with Cook in past months, arguing via tweets that a buyback of as much as $150 billion is within the company's means and would prop up its stock.

STRAIN

Since taking over from the late Steve Jobs, Cook has steered Apple in a more investor-friendly direction, including the establishment of one of the industry's biggest capital return programs.

Apple's board in 2012 granted Cook an award of one million restricted stock units (RSUs) - one of the largest pay packages for an executive in a decade, intended to signal its confidence in Cook in the wake of the late Steve Jobs.

The award vests annually, but part of the grant depends on shareholder returns versus a basket of Apple's corporate peers, including Cisco Systems Inc and Google Inc.

But Apple has come under increasing strain from rivals like Samsung Electronics 005930.KS and Huawei in key markets, while Amazon.com Inc and other manufacturers are using Google's Android software to launch competing tablets.

Apple's profit and margins slid in the September quarter despite selling 33.8 million iPhones. Sources have said demand for the $100 cheaper, brightly hued iPhone 5C has severely lagged sales for the top-tier 5S, spurring concerns about the iPhone's market positioning and its ability to compete with a growing profusion of lower-cost rivals.

This month, it finally secured a deal with China Mobile after protracted negotiations, a deal that should enlarge its footprint in the world's largest telecoms market.

source: www.abs-cbnnews.com