The increase in tensions between the United States and China in its ongoing trade war, as well as restrictions against Huawei, is fueling anti-US sentiments in China, prompting more online calls from critics of the political maneuvers to boycott Apple products.
Although there's a "very real risk" from more tariffs on Apple products, and this week's Supreme Court ruling laid the groundwork for a challenge to the App Store, neither is a "threat to future growth potential," Cowen analysts said on Tuesday.
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.