Wedbush Securities analyst Daniel Ives, like Citi analysts, believes the market is overreacting to the news that China has in recent weeks widened existing curbs (extent unknown) on the use of iPhones by state employees.
Subrat Patnaik for Bloomberg News:
Apple Inc. shares tumbled in premarket trading Thursday, on track to wipe out $194 billion of market value in just two days, as China plans to expand a ban on the use of iPhones to government-backed agencies and state companies.
Wedbush Securities’ Daniel Ives think the effect of an “iPhone ban is way overblown” as it would affect less than 500,000 iPhones of the roughly 45 million he expects to be sold in the country over the next 12 months.
“Despite the loud noise Apple has seen massive share gains in China smartphone market,” Ives, who has an overweight rating on the stock, wrote in a note.
MacDailyNews Take: Again, as always, take the irrational AAPL discounts when they arise.
Apple products are status symbols in China and they will remain that way for a very long time.
Enjoy your dog-slow, ass-ugly iPhone knockoffs, CCP gubmint drones!
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