Fears Of China Slowing Down Weighing On Apple's Stock?

Apple Inc. AAPL's stock is down more than 5.5 percent since past month amid reports that the Apple Watch isn't turning out to be a success that it was expected to be. Sherri Scribner, Deutsche Bank Research, was on CNBC recently to discuss the growth of the company's smartphone business and if fears of growth slowing down in China are weighing on the stock.

Very Difficult To Continue With Earlier Growth Rate

"Production (of the iPhones) is going to be big," Scribner said. "Apple is a pretty big supplier of phones, but when you look at the growth rates next year, Apple has grown 40 percent this year probably based on our estimates with the new phones. It's going to be very difficult for them to see that type of growth off of a 40 percent base considering how big they are."

China Slowing Will Be An Issue

Scribner was asked if investors are selling Apple stock because of the fears of Chinese economy slowing down and thereby impacting sales of Apple. She replied, "I think investors have been really excited about the growth we have seen with the new phone and the successive this iPhone 6 is largely been driven in part by China. So, China has been a big part of the growth. About 50 percent of the growth have come from the Chinese markets."

"They have China Mobile for this launch as opposed to the last launch they didn't have them for the entire time. So, China has helped and also the large form factor phones. So, if China is slowing that's one of the bigger smartphone markets, it's probably going to be an issue because that's where Apple has opportunity to gain some share," Scribner said.