Last week, China hyped Huawei’s latest smartphone launch more than the company did. The firm proved that it could release a device that is slower than a two-year-old Qualcomm (QCOM) Snapdragon 888. Still, the Huawei Mate 60 Pro+ will have 5G.
The Chinese government reportedly banned government workers on the use of iPhones at government agencies, state-operated enterprises, and government-controlled organizations. This added to the fear of holding AAPL stock, which dropped 5.16% on the week.
The fear is overblown. Apple stock previously faced technical selling resistance on the cart at around $188. It would have fallen on any negative news, ahead of its iPhone 15 launch this week.
Long-term investors who held AAPL stock for $5-$50 before 2020 should ignore the news. They do not have better alternatives. Technology stocks are expensive. Microsoft (MSFT) trades at a 34.5x price-to-earnings. Nvidia trades at 110 times. Apple stock is reasonable at just below 30 times its earnings.
The Apple iPhone 15 refresh should keep its customer base willing to upgrade and stay in its operating environment. Apple may continue to grow its service and subscription revenue as the user base expands.