Apple’s revenue may take a minor hit this year from the Chinese Communist Party’s recent move to further curb the use of iPhones by government employees in China, but Morgan Stanley analyst Erik Woodring says the selloff in Apple’s shares are “overdone.”
Apple shares tumbled 6.4% over the last two days, wiping $190 billion from its market capitalisation, following news Beijing ordered some central government employees in recent weeks to stop using iPhones at work.
Morgan Stanley analyst Erik W Woodring said Apple’s share losses were “overdone” as he does not believe the curbs will lead to something broader. He added the worst case scenario was a 4% revenue hit and a 3% earning impact for the company.
“China is critical to Apple’s success, but Apple is also critical to the Chinese economy. While the potential for a broad decoupling between Apple and China in this multipolar world clearly exists, we don’t believe recent headlines are necessarily foreshadowing this ‘worst case’ scenario,” Woodring said.
MacDailyNews Take: Yup.
See also:
• Wedbush: China’s government worker iPhone ban is way overblown – September 7, 2023
• Citi: The market may have have overreacted to China’s state employee iPhone curbs – September 7, 2023
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