Apple stock (AAPL) is poised for fresh gains as the market recognizes the iPhone maker’s long-term growth prospects in China and the positive impact of its upcoming mixed reality headset. Bank of America on Tuesday cited “promising” revenue numbers from Apple’s business in China, while Jim Cramer also highlighted the impending launch of Apple’s highly anticipated Vision Pro headset early next year. “I think Apple will take the next step up soon,” Jim said early Tuesday, citing both the headset launch and positive data from China. AAPL YTD Mountain Apple (AAPL) Year-to-Date Performance According to Bank of America, which cited data from SensorTower, Apple’s app store sales in China rose 10% year-on-year in October, following a 10% annual gain in the previous month was. The US and China were the company’s two largest app store markets, accounting for 58% of total app sales. Tuesday’s research note follows a series of negative press reports about Apple’s position in the world’s second-largest economy. Most notably, in September, the Wall Street Journal reported that Beijing had banned government employees from using foreign-branded iPhones and other devices in the workplace – leading to a massive sell-off in Apple shares. The Chinese authorities have since denied the report and the stock was able to recoup some of its losses. Apple shares are still up about 40% year-to-date. “Given recent media reports of an iPhone ban [government] Locations in China, the strong App Store data for September and October is promising for Apple,” Bank of America analysts wrote in a note on Tuesday. The company cited positive catalysts including “new product launches and stable iPhones.” Still, analysts warned that these positives could be offset by “a potentially weaker consumer spending environment.” However, we see the data as another sign that Apple continues to be a desirable brand for Chinese consumers. Its closed ecosystem, product quality and prices set it apart from competitors like Huawei from China. China accounts for about 19% of Apple’s total revenue. However, the company has also invested heavily in India to gain market share in the world’s most populous country and diversify its supply chain away from China. At the same time, the vision The Pro launch should provide Apple with another catalyst. The high-quality product – personally tested by Jim in July – will help further diversify Apple’s revenue streams and give it an edge over many of its Big Tech competitors. The company said the headset will be available early next year starting at around $3,500. “People don’t notice that [the Vision Pro] is a [business-to-business] situation,” Jim said Tuesday. “There are companies that will use it, and then we will use it,” he said of individual consumers. (Jim Cramer’s Charitable Trust has long been AAPL. You can find a full list here The Stocks.) As a subscriber to CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable foundation’s portfolio. If Jim was talking about a stock on CNBC television, he waits 72 hours after the trade alert is issued before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY, ALONG WITH OUR DISCLAIMER. NO fiduciary obligation or duty SHALL EXIST OR ARISE FROM THE RECEIPT OF YOUR INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO PARTICULAR RESULT OR WIN IS GUARANTEED.
Apple Inc. CEO Tim Cook holds an iPhone 15 Pro Max during an event at the Apple Park campus in Cupertino, California, U.S., on Tuesday, September 12, 2023.
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Apple stock (AAPL) is poised for fresh gains as the market recognizes the iPhone maker’s long-term growth prospects in China and the positive impact of its upcoming mixed reality headset.