Today's Above Avalon story:

China's Yuan Devaluation

Given the importance of this development, I am dedicating today's email to the issue, breaking up the topic into a few stories.

What Happened?
Brief Background
China's Growth Story is Cracking
Continued Yuan Devaluation Headwinds
Where Does This Leave Apple?
Final Takeaways

Yesterday, China's central bank cut its daily reference rate for the yuan against the U.S dollar by 1.9%. Earlier today, the rate was cut by another 1.6% with the central bank ending up intervening to prop up the currency at the end of the day. This is a significant negative development for Apple. More concerning is that this move is now causing more people to begin questioning Apple's growth story in China. We take a closer look at the yuan, including a brief background of the issue at hand and what it might mean for Apple's growth potential in China. We also look at the new headwinds now facing Apple, the exact parts of Apple's business impacted by a weaker yuan, and a few final takeaways.

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