A senior White House economic adviser said he expected trade uncertainty to hit earnings at many US companies, but that sales at Apple and others with large exposure to China would recover once Washington and Beijing strike a trade deal.
In both countries, the trade war has soured the economic outlook and shaken financial markets.
"China is the biggest beneficiary of Apple, more than us".
Beijing on Friday cut bank reserve requirements for a fifth time this year amid slowing growth at home and punishing USA tariffs on exports.
President Donald Trump is likely to hold talks with Wang Qishan, China's vice president, at the World Economic Forum later this month, the South China Morning Post reported, citing a person familiar with the matter.
And it puts us in a very strong position. But we're taking in billions and billions of dollars, and I hope we're going to make a deal with China. These two nations had been locked in a tariff war for much of the 2018, inflicting agonizing wounds and disrupting the flow of hundreds of billions of dollars, while both of the countries had suffered awful, alongside the global economy.
"The much larger issue is the slowing of the (Chinese) economy, and then the trade tension that has further pressured it", Cook said.
The president downplayed the effects of the economic woes on United States technology giant Apple Inc, which this week blamed slowing iPhone sales in China for a rare reduction in its quarterly sales forecast.
That same quarter, Apple would stop disclosing iPhone unit sales.
Volume on United States exchanges was 7.80 billion shares, compared to the 9.18 billion average for the full session over the last 20 trading days. Berkshire, which owns more than 250 million shares of Apple, dropped 5%.
Shares of Apple's suppliers also fell, and S&P 500 futures dropped 1.3 per cent, signalling that Wednesday's modest advance could unwind when the market reopens on Thursday.
Apple's stark warning may be ominous news for China
The Financial Times says that the company could be facing the biggest one-day drop in share price for five years. Business Insider reported that Apple quit disclosing its iPhone single unit sales that same quarter.
"It's not going to be just Apple", declared Hassett.
Mr Trump, who last month called himself "Tariff Man", has said he wants a deal but that he would impose more tariffs if China failed to cede on key U.S. demands. The matter which concerned him was the fact that Apple makes its products in China and not the US.
Stocks are jumping early Friday as investors are encouraged by news of trade talks between the US and China and a strong report on the USA job market.
USA stocks plummeted Thursday in reaction to a warning by Apple that it will miss its quarterly sales forecast.
Talks in Switzerland would follow a meeting due to start in Beijing on Monday between US and Chinese officials, the first formal gathering between the two sides since Trump and Chinese President Xi Jinping agreed to a 90-day tariff truce in December, following a widely-anticipated dinner at the Group of 20 meeting in Buenos Aires.
The news sent shudders through global markets. The talks begin on December 31.
Deputy U.S. Trade Representative Jeffrey Gerrish will lead the delegation that will meet with Chinese counterparts starting Monday.
While Mr Trump and other officials have said talks between the two sides are progressing well, they have given no details on concessions that China has made.
"We see the potential for further downside to FY19 numbers depending on the trajectory of Chinese demand in early 2019", Hall said in a note to his clients obtained by CNBC on Wednesday. Auto sales tumbled 16 percent in November over a year earlier, and weak real estate sales are forcing developers to cut prices.
"The question now is will Apple change its strategy or stick to its hubris", Ives said.