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Musing on COVID-19
Virus Negatively Impacting iPhone Production, China’s Exports But Signs of Recovery Are Extant
March 15, 2020
Wedbush cites the Chinese Academy of Information and Communications Technology's initial data showing that Apple shipped roughly 500K iPhones in the region in February compared to 1.27M in last year's quarter. The overall smartphone market dropped 55% Y/Y. The firm says that "all eyes on the Street" are now on normalizing the supply chain by late next month or early May. Wedbush expects Chinese demand to start normalizing in H2 and remains bullish on the company ahead of this fall's 5G iPhone launch. China is starting to reopen for business providing both a rebound in iPhone sales and Wedbush looks forward to normalized FY21 estimates.
China’s exports plunged 17.2% in Jan./Feb. 2020 on the back of a coronavirus epidemic that forced businesses to suspend operations, according to official data released Saturday. Capital Economics’ Julian Evans-Pritchard says that combining Jan. and Feb. data means the “published growth rate won’t fully reflect the extent of the recent weakness,” since most of the disruption was concentrated in February. He added that the recent downturn in trade is “much deeper” than the trade data is likely to suggest. “China’s economic growth mainly relies on exports, real estate and infrastructure. The outlook of exports and the property market this year isn’t so optimistic, so China will likely ramp up infrastructure investment,” Macquarie's Larry Hu said.
Virus Negatively Impacting iPhone Production, China’s Exports But Signs of Recovery Are Extant
March 15, 2020
Wedbush cites the Chinese Academy of Information and Communications Technology's initial data showing that Apple shipped roughly 500K iPhones in the region in February compared to 1.27M in last year's quarter. The overall smartphone market dropped 55% Y/Y. The firm says that "all eyes on the Street" are now on normalizing the supply chain by late next month or early May. Wedbush expects Chinese demand to start normalizing in H2 and remains bullish on the company ahead of this fall's 5G iPhone launch. China is starting to reopen for business providing both a rebound in iPhone sales and Wedbush looks forward to normalized FY21 estimates.
China’s exports plunged 17.2% in Jan./Feb. 2020 on the back of a coronavirus epidemic that forced businesses to suspend operations, according to official data released Saturday. Capital Economics’ Julian Evans-Pritchard says that combining Jan. and Feb. data means the “published growth rate won’t fully reflect the extent of the recent weakness,” since most of the disruption was concentrated in February. He added that the recent downturn in trade is “much deeper” than the trade data is likely to suggest. “China’s economic growth mainly relies on exports, real estate and infrastructure. The outlook of exports and the property market this year isn’t so optimistic, so China will likely ramp up infrastructure investment,” Macquarie's Larry Hu said.
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