“In the wake of China’s stock market drops, some investors are starting to worry that the the country’s economy won’t be able to handle demand for new consumer products and thus bring about some major problems for companies largely exposed to the country — namely Apple,” Chris Neiger writes for The Motley Fool. “China is Apple’s second-largest revenue market after the U.S. and its largest smartphone market.”
“Of course, China’s stock market problems aren’t desirable for anyone, but they likely don’t spell doom for China, or Apple,” Neiger writes. “In fact, there’s plenty for Apple to look forward to there.”
Neiger writes, “Apple’s really doing in China and why it’s a great time for the company to be there.”
Check out the slideshow here.
MacDailyNews Take:
A slowing Chinese economy is a risk for Apple. However, UBS economist Tao Wang sees limited impact of the stock market turmoil on the economy. Equities account for about 20% of household financial wealth or 12-13% if property is included. Household wealth jumped by 6% in the last nine months. The loss of this quick gain may not be as important for consumption as it could have been if the gains had been achieved over a longer period of time, since there is little evidence of earlier stock market gains substantially affecting household consumption. Moreover, the correlation between consumption and stock prices is ambiguous. We think Apple is okay for now, but we will watch the situation closely. — UBS analyst Steve Milunovich, July 9, 2015
China, of course, is crashing and bumbling their economy and stock market because their asinine ‘communist’ government has been manipulating everything they can put their hands on, from human thought to real estate construction.
Meanwhile, seeing as this foolish manipulation inevitably depresses their economy, foreign companies can look forward to low wage workers in China for years to come. Bad for China, great for foreign businesses. I’m not saying I like it. I’m saying this is how stupid China’s government is.
I just love how people who have never been to China are generous in offering their opinions about what goes on there.
I travel to China every couple months, and have been there over a dozen times (stopped counting a while ago). On every trip I make to China I stand on at least one, and often several different factory floors. I meet with company presidents and manufacturing line workers. I travel unescorted and frequently find myself on trains and subways with many ordinary Chinese citizens.
I can tell you, Derek, with great certainty, that you haven’t a clue about how China actually works. Your comments are comically stupid.
You know shit ! I am Chinese , Derek is right !
OK smart ass. So you’ve been to China. While you spent a lot of text real estate telling Derek he doesn’t know what he’s talking about, you haven’t said one thing about what you do know about China and why Derek is wrong.
China is a very big country. A lot of very good things have happened over the last two decades that have greatly improved the country’s overall standard of living. Nevertheless, an enormous amount of corruption plagues a significant percentage of their economy – maybe not the economy that you have personally witnessed which likely has to make the attempt to meet western standards to win foreign business.
You know damn well the prevalence of corruption in their society is going to bite them in the ass sooner or later. Probably sooner.
I eat Chinese food at least once or twice a month, I dunno, I stopped counting, and I know Derek is right!
I’m not saying anything at all about inner China. I can only observe from the outside as someone who specializes in computer security as well as organizational behavior. From both perspectives, China qualifies was what I call ‘A Criminal Nation.’ It’s that plain and sad. I’ve interacted enough with the Red Hacker Alliance to know they have similar views of the USA, and in many respects I cannot disagree.
My observational insights are about systems as a whole after gathering all the data I can lay my hands upon. I have no doubt that your experiences would inform my perspective. but to negate the dire consequences of China’s ridiculous, authoritarian, incompetent and totalitarian government obviously makes you look ‘comically stupid.’ You sound like an inadvertent propagandist for their absurdist cause, which of course what China trains its citizens to be.
I’d enjoy having an actual, thoughtful conversation with you. But I have no interest in getting into a flame fest with someone who only dismisses observations and conclusions that conflict with their own, which is what you’ve done.
IOW: I’m sorry you bothered to reply to my comments dismissively. I’m a collaborator in my approach to working with others. Attempt that approach if you want to reply further. Otherwise, I’m not interested.