Investor concerns about Apple’s fortunes in China are “somewhat overblown,” analysts from JP Morgan suggest, with shareholders also accused of failing to see the potential revenue generation of Apple’s Services arm.
JPMorgan is lowering its near-term forecast for iPhone shipments as part of a wider outlook for global smartphone shipments as a whole, an investor note seen by AppleInsider reads. The firm however considers the market uncertainty to be “cyclical in nature,” in part driven by the ongoing trade standoff between the United States and China…
The ongoing US-China situation-driven concerns by investors are “somewhat overblown,” given JPM’s observance of a continued decline in iPhone shipments in China over the last few years. Apple is seen to be navigating the issue “consistently” by leveraging its presence in other developed markets, and the sanctions challenges for Huawei may present an opportunity Apple could capitalize on with “adequate promotions.”
On the subject of Services, JPM acknowledges the install base concerns are valid, but points out the growth in services revenue per unit is a greater driver of Services revenue, possibly twice as large as increasing the install base.
MacDailyNews Take: The naysayers and the shorts will take anything and blow it all out of proportion for their own gains, of course.
It’s up to investors to tune out the noise and logically assess risks – and rewards.