“China’s heavily reported economic gyrations related to its stock sell-off and devaluing of its currency do not matter to Apple’s continued growth,” David Thall writes for Fortune.
“Simply put, it’s based on a false premise,” Thall writes. “The negative narration that has taken hold of Wall Street’s sentiment toward Apple essentially says that Apple’s future growth depends on increasing iPhone sales in China. And so when China’s economy has problems so will iPhone sales, and Apple’s revenue growth will decrease.”
“Let’s look at the facts, shall we?” Thall writes. “Year-over-year first-quarter iPhone sales growth has always gone in one direction, and one direction only: up… At the July 21st Q3 earning results, Apple reported year-over-year iPhone sales in China had increased 112%… Every Apple store they open immediately increases revenue and profits… Even if iPhone sales in China got whacked by half, Apple would still be growing sales in China by over 50% YoY… Apple is still a growth company. That’s a fact, not an opinion.”
Much more in the full article here.
MacDailyNews Take: The Apple rollercoaster is quite the ride! Even better, for the rational, it can be very profitable, too.
SEE ALSO:
CEO Tim Cook to Jim Cramer: Apple is seeing strong growth in China through July, August – August 24, 2015
Apple crashes under $100 in pre-market trading as tech stocks set up for dismal day – August 24, 2015