After President Donald Trump used Twitter to threaten a dramatic escalation of America's trade war with China, stocks tumbled in early trading. Apple was hit particularly hard, with shares dropping by more than 3%.
Following the publication of its second fiscal quarter of 2019 results, encompassing January through March, Apple provided additional detail surrounding the continuing situation in China, as well as more information about the Services business in an earnings conference call.
Analysts at Goldman Sachs have improved their view of Apple's share, raising the stock's 12-month target price from $140 to $182 under the belief demand in China is no longer an issue, at the same time as anticipating Apple will beat its guidance for the upcoming financial results.
Apple and Samsung are often depicted as cutthroat enemies, but it's also no secret they are also their own largest customers, unquestionably dependent upon the success of each other's business. Could that change, and would the world be better off with just a single, giant, more vertical phone maker?
Apple's decision to pull songs from its Apple Music service in China by pro-democracy musicians has come under fire from US lawmakers, suggesting Apple should not be taking part in what amounts to censorship by the Chinese government.
Apple's fortunes in China are slowly turning around, suggests Morgan Stanley, with a continuation of share growth for the iPhone user base in March taken as an indicator of better than expected results heading into Apple's upcoming quarterly financial results.
Apple has reduced the price of its products in China once again, cutting the price of the iPhone, iPad, AirPods, and other items in the market as the company attempts to resuscitate its disappointing sales figures in the highly-prized region from the last quarter's financial results.