Apple a hit in China

Apple dim sum

Canaccord Genuity Technology Analyst Michael Walkley recently visited several Apple stores in Asia, including the grand opening of Apple’s largest retail store in Asia, noting that the stores were packed with customers as the company continues to grow across the world. The new store, located in the Nanjing shopping district of Shanghai, is four stories, which Walkley said was able to handle thousands of customers shopping for Apple products, including those who lined up as early as 10 pm the prior evening for a chance to get in the door. With five stores now open in China and a new store at the International Finance Center in Hong Kong, Walkley believes Apple has a strong roadmap for growth in Asia, including the opening of dozens of new stores in the region over the next several quarters.

Separately, a JP Morgan report said that Apple is cutting orders to vendors in the supply chain for the iPad. The report says that several supply chain vendors have indicated that Apple lowered its Q4 orders by 25%, which would be the first such cut that JP Morgan’s team had seen. One industry analyst said the reduced orders, which have not been confirmed by management at Apple, could be due to weakened demand in Europe, or could be a strategic move by Apple to operate with a reduced inventory.

Apple (AAPL : NASDAQ : US$403.17), Net Change: -1.13, % Change: -0.28%, Volume: 28,812,723

Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.

For disclosures of any equities mentioned here please see: http://www.canaccordgenuity.com/en/ODD/pages/disclosures.aspx

About the Author

Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.

For disclosures of any equities mentioned here please see: http://www.canaccordgenuity.com/en/ODD/pages/disclosures.aspx.

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