Apple store in China. (VCG/Getty Images)

Apple Woos Investors With China Gain, As Market Value Reach Nears $1 Trillion

Apple’s chief executive Tim Cook said that the company was pleased with the double-digit raised of 4.4% in shares with strong growth from the App Store in China on Wednesday (8/2).

The rise was from several brokerages that predicted a boost from its service business and the launch of a new iPhone in the second half of 2019.

The company said service revenue rose to US$11.5 billion (12.6%) in the three months to June, offsetting a fall of 12% in global iPhone sales--referring to the earnings report after markets closed on Tuesday.

Apple would be able to touch the market value of US$1 trillion, shying away Microsoft that was ranked as the world’s most valuable company. Eleven of 43 brokerages who rate Apple shares have also raised their price targets for the stock. Citigroup is one of the brokerages that raised it between US$45 to $US250.

Credit Suisse analysts said that they were encouraged as Apple starts to recover from a difficult situation to the fiscal year. Despite the challenge, the company remained sustained into a more incremental fall launch cycle.

Samik Chatterjee, an analyst of JP Morgan, believed the transformation of Apple in the service business and products is a strong reason to own its shares.

For years, sales of the iPhone in China is declining which raising a concern of slowdown in the country.

Source: https://www.reuters.com/article/us-apple-stocks/apple-woos-investors-with-china-gain-market-value-nears-1-trillion-idUSKCN1UQ1JZ