2023-10-20 15:36:11
Apple CEO Tim Cook’s visit to Beijing has sparked a positive response from Chinese Vice Premier Ding Duxiang regarding Apple’s involvement in the growth of China’s digital economy. This comes at a time when Apple faces increasing competition from Chinese tech giant Huawei in its third largest market.
Counterpoint Research has reported a 4.5% drop in sales of iPhone 15 models during the first 17 days of its release in China compared to the iPhone 14. However, specific data was not provided by the research firm. In addition, the Chinese government has expanded restrictions on the use of iPhones by government employees, with several central government offices being urged to stop using their Apple devices at work.
Despite these challenges, Vice Premier Ding assured Cook that China is willing to provide more opportunities for international companies such as Apple to expand in the country. Cook expressed Apple’s positive outlook on the potential of the Chinese market and highlighted their readiness to increase cooperation in areas such as advanced manufacturing and the digital economy.
With Apple’s market value estimated at $2740 billion and an earnings multiple of 29.4, the company’s performance remains strong. While there was a slight decrease in revenues for the third quarter of LTM2023, standing at $383.93 billion, Apple’s gross profit margin remains high at 43.45%. The company’s management has shown confidence by aggressively buying back shares, and it has maintained dividend payments for 12 consecutive years, demonstrating financial strength and consistent performance.
Furthermore, Apple operates with a high return on assets and its cash flow is sufficient to cover interest payments. As a dominant player in the hardware, storage, and technology peripherals industry, Apple continues to present itself as a compelling investment opportunity.
This news article was created and translated with the support of AI and subsequently reviewed by an editor.
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