“China could present some short-term issues for Apple investors — but it shouldn’t worry them too much, according to new research,” David Marino-Nachison reports for Barron’s. “China is a crucial market for Apple’s business. In the quarter ended June 30, for example, it accounted for nearly 18% of sales and 27% of operating income. And recent economic and regulatory issues there, Morgan Stanley’s Katy Huberty wrote Wednesday, could hit the company’s services business with China, the most important market for the App Store.”

“U.S.-China trade tensions continue to concern investors, along with questions about the prospects for economic growth there,” Marino-Nachison reports. “This isn’t a time to panic, according to Huberty, who has an Outperform rating and a $247 price target on Apple’s stock, about 13% above current levels.”

“China, she wrote, presents ‘a near-term overhang, but we see limited downside to near-term estimates and remain bullish on the long term sustainability of services growth,'” Marino-Nachison reports. “On the hardware front, meanwhile, Emily Bary recently covered the notion that Apple’s latest phones might perform well in China, which should generally boost the services business.”

Read more in the full article here.

MacDailyNews Take: Tim Cook has said as much, too.

I’m cognizant that in both the U.S. and China, there have been cases where everyone hasn’t benefited, where the benefit hasn’t been balanced. My belief is that one plus one equals three. The pie gets larger, working together. — Apple CEO Tim Cook, March 24, 2018

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The Trump administration told Apple it would not place tariffs on iPhones assembled in China – June 19, 2018
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Why Apple CEO Tim Cook is acting like tech’s top diplomat – June 18, 2018
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President Trump and Apple CEO Cook meet at White House with trade the focus – April 25, 2018
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