You're watching...
FBN’s Shibani Joshi on the installment payment plan Apple is offering iPhone customers in China.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Hearts more bearish calls on apple today but the stock is resisting Shibani Joshi tells us why should get you think this -- happened began considering how pessimistic people have been non apple shares shares are down -- down today but have been down certainly over the last.
Three months or so down about 20% but -- bucking that trend couple things that could have -- on the stock.
But are not first and a downgrade by Pacific crest which downgraded the stock to sector perform saying quote.
We believe that the high gear ended -- Smartphone and tablet markets.
Are becoming saturated basically all the -- and -- fat -- is that gonna sell have already been put out -- market the other bearish factor that's going on today.
Is that the company seeing a big executive departure the company's vice president of retail Jerry McDougal.
Resigned today and there are a couple of reasons why we think they he resign not necessarily bad indications internally but he may have been pastor overlooked.
For a promotion and that's why he's leaving not necessarily because of other internal problems but it could have weighed on the stock but it's not.
And we recently spoke about house CEO apple Tim -- -- how important China is another -- -- -- -- effort to boost sales there this is interesting this why am -- you know we we've talked about ready united talked about like China is so important they're doing some really interesting things I could trickle over into other markets that talked about how expensive.
Apple products are at a premium vs other companies' products.
They're allowing -- -- Chinese customers to pay in installments over two years because -- -- iPhone is like six weeks' salary for an average Chinese worker.
Instead you can spread it out -- a couple years and now there.
Able to get sort of the middle.
In the middle of the road customer as opposed to high end customer.
Good way of testing a market there they could spread -- either -- -- few -- Probably probably had to get you have to get special credit card it with the Chinese bank and that's probably intrastate activities I think that's pretty brilliant because part of the reason many people the galaxy the Simpson -- the other -- is -- last night.
And so this is one way getting around it we don't have any reason to believe in May come here but they're testing it really important market if it works well.
I mean it could sort of counter balance all of those criticisms that we've been talking about the last few months at apple products and just too expensive they're just for high end.
Customers this allows people in different demographics to buy -- so Wilson will safe -- -- and I think it's a good idea.
I.
