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Apple's CEO Tim Cook mentioned recently that he expects China to become the company's biggest market, but as the Yuan plunges, Apple may have to raise prices to maintain profitability. Other U.S. giants who rely heavily on sales in the world's second-largest economy are less concerned, noting it is still early to assess the risks. If these giants do not hedge possible losses, the result could cause a dramatic avalanche.
Procter & Gamble Co. spokesman Paul Fox said the consumer-goods company is closely following the developments in China. “But it’s too early to speculate on next steps.” China is P&G’s second largest market after the U.S., with the Greater China region accounting for 8% of total sales in its just-ended fiscal year. Kimberly-Clark Corp., which had a 30% rise in its diaper sales in China in the last quarter, excluding currency translation, declined to comment on the devaluation. Yum also declined to comment. China accounts for more than half of the sales of Yum Brands, which owns the KFC and Pizza Hut franchises. Yum wasn’t available to comment.
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