Famed Apple Analyst Says He 'Can't Find Any Reason To Be Optimistic' On Consumer Electronics Demand

Famed Apple Analyst Says He 'Can't Find Any Reason To Be Optimistic' On Consumer Electronics Demand

The COVID lockdowns in China and the ongoing Russia-Ukraine war are casting a cloud on the outlook for the consumer electronics industry, prominent Apple, Inc. AAPL analyst Ming-Chi Kuo said on Friday.

Kuo's pessimism stems from geopolitical tensions that are threatening to derail the global economy. Demand from Russia and Ukraine will almost wholly disappear, the TFI Securities analyst said. Rising food and energy prices in Europe, due to the war in Eastern Europe, will likely dent consumer confidence in the continent, he added.

Related Link: Apple Analyst Warns Of 'Considerable Risk' For Tech Sector In Coming Months

The analyst also sees consumer confidence in China plummeting due to the government's zero-COVID policy. Moreover, a stronger U.S. dollar will severely impair demand and growth in the emerging markets, he added.

Although demand is currently holding up in the U.S., the analyst said the country will eventually be impacted by the global recession.

"From the systemic risk perspective, I can't find any reason to be optimistic about the outlook for consumer electronics demand in 2H22," the analyst concluded.

Posted In: Ming-Chi KuoTFI SecuritiesAnalyst ColorNewsAnalyst RatingsTechMedia