Apple: China Sales Collapse Is Only Getting Worse

Summary

• Apple Inc. faces worsening challenges in China, including declining sales, delayed AI features, and increased supply chain risk from potential US tariffs.
• Despite Q2 revenue and EPS beats, Greater China sales fell, and Apple lost market share to domestic competitors, now ranking fifth in the region.
• The services business remains a bright spot, with record revenues and expanding margins, helping to offset iPhone headwinds and macroeconomic risks.
• Given these risks and Apple's current valuation near fair value, I rate AAPL stock as a Hold, expecting a limited upside in the near term.

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Ever since I highlighted the latest China-related problems that Apple Inc. (NASDAQ:AAPL) faces back in December, the company’s stock has depreciated by ~20% and underperformed against the broader market. Since that time, Apple’s troubles in China

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Bohdan Kucheriavyi is not a financial/investment advisor, broker, or dealer. He's solely sharing personal experience and opinion; therefore, all strategies, tips, suggestions, and recommendations shared are solely for informational purposes. There are risks associated with investing in securities. Investing in stocks, bonds, options, exchange-traded funds, mutual funds, and money market funds involves the risk of loss. Loss of principal is possible. Some high-risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including greater volatility and political, economic, and currency risks and differences in accounting methods. A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.