5 Stocks That Will Suffer If China Invades Taiwan

1. Apple Inc. (NASDAQ:AAPL)

Number of Hedge Fund Holders: 131

Apple Inc. (NASDAQ:AAPL)’s largest iPhone factory is operated by Foxconn Technology Group in Zhengzhou, Central China’s Henan Province. If the US and China were to put economic sanctions on each other, Apple Inc. (NASDAQ:AAPL) stands to suffer incredibly as it is largely dependent on the Chinese supply chain and labor force. 

Morgan Stanley analyst Erik Woodring estimated that Apple Inc. (NASDAQ:AAPL)’s App Store net revenue growth declined to 1% year-over-year in July from 2.5% year-over-year growth last month. The deceleration, which the analyst observed was worse than he anticipated, was driven by year-over-year slowdowns in all of the App Store’s 10 biggest markets, except for Germany and France. His Q3 2022 App Store estimates for 5% year-over-year growth remain unchanged, and he maintained an Overweight rating and a $180 price target on Apple Inc. (NASDAQ:AAPL) shares on August 3.

Among the hedge funds tracked by Insider Monkey, 131 funds were bullish on Apple Inc. (NASDAQ:AAPL) at the end of Q1 2022, compared to 134 funds in the prior quarter. Warren Buffett’s Berkshire Hathaway is the largest stakeholder of the company, with 891 million shares worth $155.5 billion.

Here is what Wedgewood Partners has to say about Apple Inc. (NASDAQ:AAPL) in its Q2 2022 investor letter:

“Apple grew revenues +9%, driven by +17% growth in the Services segment. While iPhone revenues grew a modest +5%, it was on an exceptional year ago comparison of +66%. iPhone continues to capture most industry smartphone profits by focusing on high-end price tiers. Apple is taking nearly two-thirds of the revenue share in the premium ($400 and above) smartphone segment. Further, most of the growth was driven by expansion in the “ultra-premium” price tier of $1000 or more per unit.[1] As we have highlighted in the past, Apple’s relentless focus on the development and integration between hardware (especially integrated circuits) and software continues to add significant value for customers of its products and services. We expect this favorable competitive dynamic to continue for the foreseeable future.

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