"Mad Money" host Jim Cramer has warned that owning Apple Inc. AAPL stock could be painful amid a decline in iPhone sales in China.
What Happened: Cramer expressed his concerns about Apple’s stock, highlighting the 30% drop in iPhone sales in China, a key market for the company.
"Apple slammed hard by JP Morgan, i-phones (sic) looking down more than 30%, I saw own it don’t trade it but owning will hurt right now."
Apple experienced a significant decline in iPhone shipments in China, with about a 33% drop in February compared to the previous year, highlighting a continued downturn in demand for its leading product in a crucial overseas market.
Deepwater Asset Management's Gene Munster believes that Apple CEO Tim Cook’s latest visit to China is a sign that Cupertino could “double down” on Beijing.
This comes amid Apple's increasing regulatory battles, with the latest being the U.S. Department of Justice’s (DOJ) antitrust lawsuit.
Cramer earlier said "nothing good is going to come out of China for Apple" in the near term after a 24% fall in iPhone sales in the country during the first six weeks of 2024.
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Why It Matters: The decline in iPhone sales in the Chinese market is part of a broader trend, with government data indicating that foreign brands shipped approximately 2.4 million smartphones in February, a period affected by the timing of the Lunar New Year.
This downturn in sales has been attributed to a larger geopolitical issue by some experts. Sarah Kunst, a former senior advisor at Bumble, recently commented that Apple’s struggles in China are “less about Apple and more about a much bigger geopolitical kerfuffle.”
Price Action: On Wednesday, Apple stock was up 0.43% in premarket trading after closing at $169.71 on Tuesday, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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