iPhone has been reported to make blockbuster sales in China recently, suggesting that worries about the company’s growth projection in the world’s second-largest economy are overdone as Apple’s shares rose around 3 percent in early trading on Wednesday.
The stock has lost about 7 percent of its value in the past three months as investors fret that the slowing Chinese economy would derail Apple’s successful run in the country.
Apple’s sales in Greater China, including Taiwan and Hong Kong, nearly doubled in the third quarter, accounting for nearly a quarter of the company’s total sales.
‘If the Chinese consumer is pulling back on spending then it seems to be either at the very high luxury end or maybe on some of the everyday non-essential items,’ Atlantic Equities analyst James Cordwell said.
‘I think the smartphone is increasingly viewed as an essential in China. So, I don’t see the economy weighing significantly on Apple growth over the next few quarters.’
Apple’s results follow stronger-than-expected earnings from companies including Alibaba Group Holding Ltd (BABA.N) and Nike Inc (NKE.N).
Apple Chief Executive Tim Cook downplayed concerns about China on Tuesday.
‘If I … just look at how many customers are coming in our stores regardless of whether they are buying, how many people are coming online and in addition to looking at our sales trends, I would not know there was any economic issue at all in China,’ Cook said on a conference call.
