Apple's holiday-quarter forecast faces threat from Huawei, weak China market

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- Apple investors will have one big question when the world's most valuable company reports earnings on Thursday - will Huawei's resurgence in China dampen its holiday-quarter expectations?

"Strength of the iPhone 15 cycle is the key question heading into the December quarter," Bernstein analysts said, adding that they expected"muted" sales of the device due to a lack of new features, strained consumer spending and competition from Huawei. But there are signs of an economic pick up in China. Data released last month showed the economy grew at a faster-than-expected clip of 4.9% in the third quarter - though less than the 6.3% expansion in the second quarter - while consumption and industrial activity also surprised on the upside in September.

However, the fiscal first-quarter projections suggest an improvement from an estimated increase of 2.8% for the three months ended September, marking the largest rise in iPhone sales since the start of this year.

 

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