China's influence over Apple's financial health is growing. In fiscal 2011, the country accounted for sixteen percent of Apple's revenues. But is Apple's growth in China sustainable?
Friday, two analyst reduce forecasts amid what one described as a 'muted' response to today's iPhone 5 release in the world's largest market. As a result, Apple shares fell 3.9 percent to a ten-month low.
The decline also hurt a number of Apple's suppliers as the firm is thought to be cutting orders in order "to balance excess inventory". For example, Broadcom is down 3.13 percent and Qualcomm dropped 4.7 percent.
As a result, Jefferies analyst Peter Misek cut his iPhone shipment estimate for the first three months of 2013 to 48 million, down from 52 million. He also trimmed Apple's expected gross profit margin to 40 percent, down two percentage points...