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Apple Inc. (AAPL) China Problems Can’t Crush Product Demand in Asia

Investors and lovers of Apple Inc.  can perhaps breathe a sigh of relief. Despite overstated talks of a China problem, it appears as though the east Asian country’s appetite for Apple products cannot be quelled, not even by a crashing economy.

Apple Store Asia

Though it is true that Chinese markets are unpleasant at the moment, early figures show that Apple consumers remain relatively unfazed.

Sales reports show that the iPhone 6 has had and continues to hold great success in the region. The Apple Watch, too, has been in high demand. Research entity RedTech Advisors reports an estimated 1 million watches have already been sold in the country.

In June the company managed to sell more than 626,000 of its watches to Chinese consumers. That’s an estimated 22 percent of Apple Watch sales sold in one country within a three month period. According to RedTech, the number of watch activations in Asia’s largest economy are still on the rise.

July saw the sale of around 923,000 watches and 1,069,115 in August.

However, the growth of Apple Watch sales in China is slowing. Analysts do not expect sales to speed up until November. This reduction of sales is not due to consumer disinterest though. It is a lack of supply in the region that hinders an otherwise very healthy demand.

Was Apple in Any Real Trouble?

Though it may be considered relieving news for some, many analysts share the view that Apple Inc.  was never in any sort of trouble to begin with. Dan Ernst, a Welch Capital Partners analyst, said that the issues in China were never a major threat for an entity as large as Apple.

Apple Inc is keen on increasing its presence in China and plans to up the number of its stores in the country to 40 by 2016. The company is adamant on topping the Chinese markets.

“Nothing that’s happened has changed our fundamental view that China will be Apple’s  largest market at some point in the future,” CEO Tim Cook has assured.

Different Perspective From Jeffries Analyst Cho

With another perspective, Jefferies analyst Jinho Cho reversed his analysis that iPhone shipments would rise now saying that shipments would “stagnate” in Q3.  Cho believes China may prove to be a problem for Apple saying “consumer sentiment has recently been deteriorating in China, the world’s largest iPhone market.” Total smartphone demand will be just 9.15 million units in Q3, slightly down by 1.5 percent year-over-year.

New Apple Products to be Unveiled

Circulating rumors have people anticipating the upcoming release of a larger iPad.

Rumored to called the “iPad Pro”, it will feature a 12-inch display, support a stylus, run on iOS 9.1 and even hold unique adaptations of Siri. It is said that the reveal will take place next Wednesday – the 9th of September – during Apple’s recently announced Graham Auditorium event in San Francisco.

Also said to be on the unveiling roster is the new Apple TV, the new iPhone and iPad Mini.

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Adam Green is an experienced writer and fintech enthusiast. He he worked with LearnBonds.com since 2019 and covers a range of areas including: personal finance, savings, bonds and taxes.

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