‘It’s a dark day for Apple,’ says analyst Dan Ives


CEO Tim Cook told CNBC’s Josh Lipton on Wednesday the shortfall is “100 percent from iPhone, and it’s primarily in China.”

“It’s clear that the economy began to slow there for the second half, and what I believe to be the case is the trade tensions between the United States and China put additional pressure on their economy,” Cook said.

Ives said the China demand story over the next few quarters will be the focus going forward for Apple.

“The degree of softness that we’re seeing in China is a bit of a jaw-dropper,” he said on “Closing Bell.

However, right now he views this as “the sum of the parts.”

While he expects Wall Street analysts to bring their targets for the stock down in the near term, there are questions about what could happen in the future.

“It comes down to: Are they going to cut prices? Is this a two- or three-quarter massive downtick that we’re seeing and then we start to see better pricing in terms of 2019? In that case, the installed base [total current users] and the iPhone story continues to be there,” he said.

It all comes down to how Apple takes things from here.

“This, in my opinion, for Cook will be a defining period, how he and the company handle it specifically around metrics and China demand.”


Source link

Products You May Like

Articles You May Like

5 things you need to know about investing in bonds
The red-hot IPO market could mean bad news for future market returns
‘Hunger Games’ prequel novel coming in 2020
How the U.S. lost its energy independence to the Middle East
China’s job market faces new pressure as trade war with US drags on

Leave a Reply

Your email address will not be published. Required fields are marked *