Market Overview

Apple's Stock Under Pressure Following Report Of Product Price Cuts In China

Apple's Stock Under Pressure Following Report Of Product Price Cuts In China

Apple Inc. (NASDAQ: AAPL) weighed on the market Monday morning after CNBC reported the company cut prices on a wide range of products in China by nearly 6 percent.

Apple has cut prices for iPhones, iPads, Macs and AirPods in its official China online store. Greater China represents about 15 percent of Apple’s global revenue.

Why It’s Important

Apple blamed the ongoing trade war and weakening iPhone demand in China for its revenue miss in the most recent quarter. Apple’s Greater China revenue was down about $5 billion in the fourth quarter, or more than 25 percent compared to a year ago.

The pricing cuts are disappointing to investors already concerned about falling demand in China. Last week, Bank of America analyst Wamsi Mohan said supply chain checks in China suggest iPhone orders have stabilized.

“We are comfortable with our thesis that consensus is too pessimistic on iPhone units/revs,” Mohan wrote in a note last week.

Bank of America estimates iPhone channel inventory declined by 4.5 million units in February after falling by 4 million units in January.

Apple bulls may take comfort in the fact that the latest round of price cuts in China could simply be a response to the value-added tax cuts that took place in China on Monday. Apple and other manufacturers had their value-added tax cut from 16 percent to 13 percent, and Apple has a history of passing tax savings on to customers.

Price Action

After opening in positive territory, Apple traded lower by 0.6 percent to $188.67 per share following news of the pricing cuts.

Related Links:

Apple As A Service: Analysts Break Down Apple TV+, Apple News+ And Apple Arcade

Analyst: Video Service Highlights Apple's 'Law Of Large Numbers Problem'

Latest Ratings for AAPL

Oct 2020Raymond JamesMaintainsOutperform
Oct 2020Piper SandlerMaintainsOverweight
Oct 2020Credit SuisseMaintainsNeutral

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings


Related Articles (AAPL)

View Comments and Join the Discussion!

Posted-In: Bank of America ChinaAnalyst Color News Global Analyst Ratings Tech Media Best of Benzinga

Latest Ratings

HYMCBMO CapitalInitiates Coverage On
DEMorgan StanleyMaintains335.0
SBNYRaymond JamesMaintains138.0
CORTHC Wainwright & Co.Maintains32.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at