Inflation and weak China demand hit Apple hard!
Inflation and weak China demands have been giving Apple some hard time. The tech giant introduced their brand new series but still bad news keep coming.
Inflation is a problem that affects everyone and is expected to continue for a while. The process that started with the coronavirus created ongoing problems around the world. In this context, even big companies such as Apple have been badly affected.
Even though Apple Inc.'s (AAPL.O) earnings report on Thursday showed the best quarterly growth for iPhone sales this year, it could still indicate a challenging holiday season as demand slows in China and inflation reaches multi-decade highs.
According to Refinitiv, consumers upgrading to the company's premium-priced Pro phones are the reason why analysts anticipate that iPhone sales will increase by 11% in the fiscal fourth quarter that ended in September. On the other hand, it is anticipated that growth will slow to just 2% during the crucial holiday quarter. This comes as bad news for Apple. The tech giant was highly excited about introducing their brand new iPhone 14 series.
Inflation and weak China demand hit Apple hard!
According to TrendForce, a market research company, "The iPhone 14 Pro series boasts improved specifications while unit prices are the same as the models from last year, making pre-orders for the Pro series highly popular." Although Pro models are quite popular, Apple is still having hard time due to Chinese weak demand. Regarding the situation Bernstein analyst Toni Sacconaghi has shared his ideas:"We worry that Apple may have been a COVID beneficiary, amid work/learn from home and strong consumer spending, which could reverse, particularly as consumers' spending priorities change and rising rates potentially pressure demand".
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