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Apple stock price bubble continues despite disastrous news from China

It seems that some people will buy Apple shares no matter what happens. The company’s share price managed to strengthen by 0.2% yesterday despite what can only be described as catastrophic news from China.

Last week, it became known that Credit Suisse data points to a 35.4% drop in iPhone sales in November. This plunge took place against the background of a moderately growing smartphone market in that part of the world.

It followed a 10.3% drop in October. Yesterday, things got worse when yet another analyst confirmed that channel checks indicate a similar trend. On Tuesday, Rosenblatt analyst Jun Zhang announced that iPhone sales in China had tumbled by around 30% on an annual basis last month.

While it’s always difficult to predict future trends, Zhang believes that the emergence of 5G phones in China (while Apple still has not a single 5G phone to offer) will place additional pressure on iPhone sales going forward.



Zhang kept his sell rating on Apple stocks unchanged, and his price target remains at $150. Taking into account the fact that Apple shares are selling for around $280 at present, this is a very dark view indeed.

Zhang is most likely the realistic one here: the current Apple stock price simply does not take into account the latest disastrous sales news from China.

Granted, iPhone demand in the US seem to remain fairly strong, but China will most likely turn out to be a major drag on the firm’s December sales.

Apple escaped an even bigger disaster recently when tariffs that were supposed to become effective on 15th December were postponed.

These would have hit electronic devices such as smartphones badly. Apple would have had to either absorb the cost, which would have negatively impacted on profits, or increase its already high prices.

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About the author

Chris

I've been a passionate evangelist for Apple and the Macintosh throughout my working life, my first love was a Quadra 605 working with a small creative agency in the south of Norfolk UK in the mid 1990's, I later progressed to other roles in other Macintosh dominated industries, first as a Senior graphic designer at a small printing company and then a production manager at Guardian Media Group. As the publishing and printing sector wained I moved into Internet Marketing and in 2006 co-founded blurtit.com which grew to become one the top 200 visited sites in the US (according to Quantcast), at its peak receiving over 15 million visits per month. For the last ten years I have worked as an Affiliate and Consultant to many different business and start ups, my key skill set being online marketing, on page monetisation, landing page optimisation and traffic generation, if you would like to hire me or discuss your current project please reach out to me here.

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