“Chances are, you’ve been hearing an awful lot about China lately. The Middle Kingdom’s broader macroeconomic slowdown has been weighing on markets recently, particularly this last week,” Evan Niu writes for The Motley Fool.
“China’s economy is indeed slowing, and it has now devalued the yuan to stimulate exports while also cutting interest rates to spur economic activity. Chances are, you’ve also heard about all of this as it relates to Apple’s business, since China is the Mac maker’s second-largest, fastest-growing market,” Niu writes. “To be clear, China’s deceleration may very well have some impact on Apple. I mean, how could it not? But investors seem to be overweighting this concern, when they should really delink the current emotional sentiment from the reality of just how strong Apple’s business is in China is. Apple’s business in China is far more resilient and much less vulnerable to macroeconomic conditions than you may think.”
Niu writes, “Here’s the only real question that actually matters: Does the ongoing macroeconomic slowdown pose a meaningful threat to the longer-term trend of China’s booming middle class? This is the key to Apple’s future in China — and the answer is no.”
Read more in the full article here.
MacDailyNews Take: Appel CEO Tim Cook has repeated said that Apple continues to do well in China and that there’s no significant evidence of China’s economy impacting Apple’s sales in the country.