“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

SEE ALSO:
David Rubenstein: US-China trade dispute is a ‘skirmish, not a war’ – October 9, 2018
Trump administration to spare some Apple products including Apple Watch, AirPods, and HomePod from latest China tariffs – September 17, 2018
China’s stock markets down as President Trump said to ready new tariffs – September 17, 2018
Cramer: Here’s why China won’t boycott Apple as part of its trade war with the US – August 7, 2018
Apple could be used as a ‘bargaining chip’ in the trade war, Chinese state-run media warns – August 7, 2018
Why the US-China trade war may not have much impact on Apple – July 17, 2018
Apple launches $300 million China Clean Energy Fund – July 13, 2018
What trade war? Markets shrug off US-China dueling tariffs – July 6, 2018
U.S. President Trump puts tech in trade war crosshairs with planned curb on China investment – June 25, 2018
The Trump administration told Apple it would not place tariffs on iPhones assembled in China – June 19, 2018
Chinese stocks end at 2-year low, Apple suppliers sink on trade-war concerns – June 19, 2018
Why Apple CEO Tim Cook is acting like tech’s top diplomat – June 18, 2018
Apple CEO Tim Cook doesn’t expect a full-blown trade war between the U.S. and China – June 5, 2018
President Trump and Apple CEO Cook meet at White House with trade the focus – April 25, 2018
Apple CEO Cook to meet with President Trump – April 25, 2018
Why Apple stock can withstand a Chinese trade war – April 5, 2018

Apple CEO Tim Cook heads to China as President Trump orders 25 percent tariffs on up to $60 billion in Chinese imports – March 23, 2018
BoA Merrill Lynch: Apple is prepping a ‘foldable’ iPhone; U.S. and China trade tensions not an issue for Apple – March 23, 2018
Designed in California. Assembled in China. How Apple’s iPhone skews U.S. trade deficit – March 21, 2018
President Trump blocks Broadcom-Qualcomm deal over China concerns – March 13, 2018
Elon Musk sides with President Trump on trade with China – March 8, 2018
Analyst: President Trump’s tariff impact on Apple would be just a ’rounding error’ – March 7, 2018