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Sunday, March 4, 2012

Five Biggest Challenges for Apple in China

Five Biggest Challenges for Apple in China
Why is Apple so severely under-valued? That could be due to a massive earnings growth slowdown expected for 2013 — up a mere 12%. Why would Apple’s earnings slow down so much? It’s entirely possible that before he died, Steve Jobs set in place a new product slate that would only put Apple’s earnings at warp speed for another 18 months.
Another possibility is that Apple’s problems in China could cost it some serious earnings growth. Apple got some bad press in January related to fires at the Foxconn factory along with the suicides and overwork of its young employees. I was unable to find any Apple customers who would stop buying its products as a result and the general feeling seems to be “who cares?”

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