EGRNF - Apple's Exposure To China's Evergrande Crisis: Short-Term Headwind Long-Term Tailwind
- The collapse of China's second-largest property developer, Evergrande, could wreak havoc in the Chinese economy, which is already losing growth momentum.
- Nearly one-fifth of Apple's sales come from China (which is Apple's fastest-growing market), and so, a potential slump in the Chinese economy is naturally causing jitters across Apple's shareholder base.
- Early iPhone13 pre-order data from China is encouraging; however, investors should keep a close eye on Apple's performance in this region over coming quarters.
- Since the iPhone 13 launch event, Apple's stock has had a small dip. Although China's crisis is an evolving situation, I see Apple as a safe haven investment for the next decade.
- I rate Apple a buy at $144.
For further details see:
Apple's Exposure To China's Evergrande Crisis: Short-Term Headwind, Long-Term Tailwind