The recent days have been confusing for investors of Apple. However, on Tuesday, an expert informed CNBC that he is keeping his focus on the sales of iPhone X in China.
“Based on reports that we have seen, there definitely is a lot of concern on how the X will do,” stated Hans Tung of GGV Capital, a technology investment company that concentrates on the nexus of China and the United States. “But looking at China, the early indication for the second largest market for iPhone is that it’s doing surprisingly well in the first weeks of sales.”
The remarks of Tung on the ” Squawk Alley ” of CNBC come amid a flurry of speculation around the future of Apple. Over the weekend, a bullish feature predicting that Apple would become a trillion-dollar firm in 2018 was published by Barron’s. The said story may have been validating optimists. However, it also inspired Apple bears to declare that the stock was now “jinxed.”
A report from a Taiwanese newspaper, citing sources that were left unnamed, stated that Apple would reduce its forecast for its flagship phone during the first quarter. By mid-day Tuesday, the headlines had shaved over $20 billion from the market valuation of Apple.
Apple does not usually comment on market rumours. However, according to Reuters, earlier this month, Tim Cook, the Apple CEO, said that he “couldn’t be happier” with the demand for the iPhone X in China.
Chinese New Year, which fell in mid-February in 2017, has also historically been a help for the company. Nonetheless, Reuters discovered that the hype on social media for the iPhone X has not kept up with the hype of the iPhone 6 that was released in 2014.
Tung stated that if Apple does not continue to include more “breakthrough features and designs,” it will become tougher in China, where Android is commoditising the iOS. Brands such as Oppo and Huawei undercut prices of Apple, and WeChat offers much more software features to its mobile users in China.
However, Tung stated that even though the overall sentiment is now down, “there could be some upside surprises to iPhone X” in China.
“The Face ID feature is getting some positive responses,” said Tung, noting that the said feature has become popular enough in order to inspire a joke meme. “The running joke in China … on WeChat and Sina Weibo is that ‘Face ID technology is not working perfectly — I had a photo of my favourite star in front of my iPhone X, and it unlocked.'”