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Apple in China (2015)
INTRODUCTION
The On August 21, 2015 US-based technology giant Apple Inc.’s (Apple) stock prices plummeted, partly on fears over the Chinese economic meltdown. Apple shares fell by 6% and the company lost about US$160 billion in market capitalization (See Exhibit I). Analysts were concerned that Apple might be losing ground in China, the second biggest market for the company after the US. Three days later Apple’s CEO Timothy Cook (Cook) released a rare mid-quarter update on the company’s performance, in a bid to rest fears among the company’s investors over the impact of the economic slowdown in China on Apple’s growth. Cook said that Apple continued to experience strong growth in China as it reported a 112% year-over-year revenue growth in the Greater China region for the quarter ended June 2015. He said that Apple would gain in the long-term in China as the middle class grows and access to Long Term Evolution (LTE) networks expands in China. Cook said,... |
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