Apple stock is struggling to break through the $200 psychological barrier as it contends with potential bad news surrounding its Apple Watch in the U.S. and iPhone in China, but analysts are confident that both issues will be relatively short-lived.
Apple is preparing to comply with a U.S. import ban over the devices and said Monday that it would pre-emptively pause sales of its Apple Watch Series 9 and Apple Watch Ultra 2 to customers in the U.S.
If Apple fails to win a stay on the import ban and a potential software update to avoid using the contentious technology does not work, it will probably settle with Masimo and pay it a per-unit royalty, according to independent analyst Richard Windsor, who publishes Radio Free Mobile.
Meanwhile… Bloomberg reported recently that more Chinese agencies and government-backed firms have ordered staff to stop bringing iPhones and other foreign devices to work, citing people familiar with the matter. That represents an extension of the first such restrictions in September.
However, the extent to which such government restrictions will affect consumer behavior is still unclear.
“While there are lingering worries around iPhone shadow government bans in China for now this issue is very containable and has not dented demand for Cupertino in this key region based on our recent checks,” wrote Wedbush analyst Daniel Ives in a research note Monday.
MacDailyNews Take: Even without the U.S. Apple Watch and China iPhone issues, the stock would be pausing around the $200 barrier as round numbers tend to spook investors regardless of the lack of rationality. Perhaps with more dispassionate automated investing, such barriers will be easier to overcome.
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