Apple is a great marketing success. However, I believe it faces some big headwinds even in China as we are now entering a period where the consumer is backing away from discretionary purchases. While Apple is not part of the consumer discretionary stock sector that part of consumer sentiment is best represented by the XLF ETF and it is showing warning signs.
I don’t view Apple in the same way as IBM, Intel, or Microsoft, which are tech names. Apple on the other hand takes tech and makes it into things people can live without, but which they desire because it is so cool. I even have an i-phone. That is good as long as the consumer is feeling chipper, but austerity has a way of tempering things.
So what does this mean for Apple stock, to me a sale over 590 is a gift and at the moment it is trading at 608 in overnight trading.