Apple is not having a good time in the American stock market, as the price of its stock is constantly falling and therefore the stock market value is moving away from the much sought-after billion dollars that they could taste only for a few days. Analysts at Morgan Stanley are pessimistic about the future of Apple’s shares as they claim that will continue to cut its price because of the Chinese market which they are not renewing as often as before.
Analyst Katy Huberty is clear: ‘the Chinese smartphone market is to blame’ . Market growth is slowing down because Chinese users are not renewing their devices as often each year.
Due to this trend, Morgan Stanley h has lowered the target price of Apple shares from $253 to $236, although there are many other factors that are currently affecting the market. This is a much more positive value than the one given by other analysts, which is around $212.
It is true that all US companies are falling in value on the stock market due to the huge trade war between the US and China . Donald Trump seems to be reaching an agreement with the Chinese government, but this is not making the stock go up. To give you an idea, today Apple has gone down again by 2%, going back to May values.
The analyst Huberty has stated that “during the meetings in Asia the weakening of smartphones in the Chinese market was highlighted” . This is in line with numerous reports that have been emerging over these weeks where it has been analyzed that several companies were affected in the same way, drastically lowering their revenues.
With this new report, Morgan Stanley joins a long list of predictions that Cupertino’s company will not go up in the American stock market during this cycle due to these factors and the low sales that the new Apple devices such as the iPhone XR are having.
The company wants to turn this trend around by working on a new marketing campaign that will stimulate the sale of these new devices, already adding a more extensive description on the official website or the $100 bonus when buying one of these iPhones in the Japanese market.
Leave us in the comment box what you think of this new analysis that was published today.