Market Analysis

Analyst lower Apple share forecasts as Chinese market underwhelms

Apple is reportedly asking its suppliers to review the underline costs of transferring between fifteen to thirty percent of its production capacity away from China, as the world’s second-largest economy continues to miss the tech giants sales targets. Apple is reported to be considering shifting its production bases to more promising emerging markets, such as Southeast Asia or Mexico.

The company is said to have seen the downside risks associated with over-reliance on the Chinese market, as the trade dispute continues to impact iPhone and laptop sales. Apple has been considerably affected by the worsening trade dispute, as Chinese consumers tighten their belts as the economy experiences a slowdown. Chinese retail sales have been trending lower since 2014, with the Sino-U.S trade war exacerbating the five-year trend.

Analysts have lowered their price and sales targets for iPhone sales in the third fiscal quarter of this year, due to the slowing global economy and ongoing structural issues inside the company. Investors have been notably underwhelmed by the latest product launches from the tech giant. Analysts are eagerly awaiting the company’s third-quarter results later this summer, as they hope it will shed some light on the current standing of the global economy, following the most recent increase in trade tariffs on both American and Chinese goods.

Apple’s share price has moved over twenty percent higher this year, although it remains fifteen percent below its record all-time high, which was reached in the fourth quarter of last year. The news that Apple is looking to move some of its manufacturing outlets to new emerging market had only a limited impact on its share price.


Apple Inc Daily Mountain Chart Source ActivTrader Platform

Apple Inc Daily Mountain Chart | Source: ActivTrader


Apple’s share price is once again trading above its 200-day moving average and trading towards the $200.00 level after bulls moved in from the $175.00 level. The 2019 trading high for Apple’s share price is currently located around the $215.00 level, while its all-time price high is found just above the $230.00 level.


Written by Nathan Batchelor, External Analyst, ActivTrades

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