Apple stock is having an awful August, now in correction
Apple stock is having an awful August, now in correction
First and foremost is the increasing economic pressure in China that unfolded in August.
Fears on the health of over-leveraged property developers, a slow-to-act Chinese government on the yawning crisis, and a sagging stock market have clouded the outlook for Apple product demand.
The importance of China to Apple's results shouldn't be understated.
Apple's sales in Greater China rose 8% in the most recent quarter to $15.76 billion. Sales of iPhones in the country increased by a double-digit percentage as consumers upgraded their smartphones.
Greater China is seen hauling in $67.2 billion in sales for Apple in the fiscal year ended Sept. 24, 2023, representing 18% of total sales. Wall Street analysts currently expect sales in Greater China to increase nearly 16% in Apple's new fiscal year on the back of brisk demand for the iPhone 15.
But CEO Tim Cook appeared to tamp down expectations on China by signing off on a cautious September quarter financial outlook when it reported results earlier this month.
Apple guided to a modest year-over-year revenue decline. The Street was banking on slight growth in the quarter.
