It is inconceivable that the shares should take a tumble after it was reported that sales of Apple’s flagship iWatch had fallen by 90 percent, so the Tame Apple Press decided to blame China.
The Chinese share market is suffering from a bad case of burst bubble and the Tame Apple Press logically felt that since China is a key market for iPhones the company would suffer.
While that is true, many analysts in China had been suggesting that sales of expensive smartphones in China were slumping anyway and Apple was about to get a sales shock.
Apple shares were down two percent at $120.15 in afternoon trade and have lost about four percent since July 1.
Some investors fear that the turmoil could hurt consumer demand and the Chinese economy as a whole, after all it is impossible that the shine could go off Apple. Apple’s favourite press agency Reuters quoted FBR analyst Daniel Ives as saying that China was poised to be Apple’s “high-octane fuel for the next few years, especially for iPhones” Given a lot of the dark clouds we are seeing in China, that has spooked investors, he claimed.
Of course it was nothing to do with the Slice Intelligence that sales of the Apple Watch have dropped since its launch in April and the fact the product has not seen any significant boost for profits.
One of the big difficulties here is that independent analysts and journalists who have not sold their credibility by advertising for Apple can’t get their hands on data to tell what is really going on.
If Apple was seeing a crash in iPhones in China and a general iWatch product failure, that would be enough in its own right to cause shares to fall. If the problem is being caused by the Chinese share market then why are all the stories about how it will affect Apple?