Tim Cook, in a statement given to CNBC:
As you know, we don’t give mid-quarter updates and we rarely
comment on moves in Apple stock. But I know your question is on
the minds of many investors.”
A large part of the current market sell-off is driven by fears about China’s economy, and a significant factor in Apple’s valuation is the company’s extraordinary growth in China. So this is a rare case where Apple’s recent stock price drop is arguably rational: investors see problems in China’s economy, and it is a fact that China is Apple’s second-most important market. And in the long-term, it’s quite possible — inevitable, perhaps — that China will one day be Apple’s most important market.
I get updates on our performance in China every day, including
this morning, and I can tell you that we have continued to
experience strong growth for our business in China through July
and August. Growth in iPhone activations has actually accelerated
over the past few weeks, and we have had the best performance of
the year for the App Store in China during the last 2 weeks.
Obviously I can’t predict the future, but our performance so
far this quarter is reassuring. Additionally, I continue to
believe that China represents an unprecedented opportunity over
the long term as LTE penetration is very low and most
importantly the growth of the middle class over the next
several years will be huge.
Translation: Apple is still doing great in China, right now, but the real prize remains the long-term opportunities.
The trading day isn’t over, but as I type this, Cook’s email seems to have resonated.
★ Monday, 24 August 2015