The Worst May Be Over for Apple in China
Apple's (NASDAQ: AAPL) stock may be taking a beating amid the novel coronavirus outbreak, but with factories in China reopening and staff returning to pre-virus levels, the worst may be over for the iPhone maker in one of its most important markets.
Apple's performance in China had been off to a rocky start at the beginning of 2019. But by the end of the year, business was booming thanks to the iPhone 11, AirPods, and Apple Watch. Those three products were the reason Apple reported 9% revenue growth in its fiscal first quarter. That all changed in early February, when Apple issued a revenue warning due to the disruptions the coronavirus was causing on the supply chain.
Most of Apple's manufacturing and lots of demand comes from China. With millions of people quarantined and stores shuttered, it was a foregone conclusion that Apple would suffer. Just how bad the revenue miss will be remains to be seen, but there are signs that business is going back to normal in China, which bodes well for Apple's prospects and its stock.
Source Fool.com
