Short interest in Apple Inc. (NASDAQ: AAPL) shares ticked higher ahead of the huge tech company’s earnings. The move was modest enough that it is not a good sign of short seller sentiment. However, Apple is still the sixth most shorted stock traded on Nasdaq, based on total shares sold short at 90,192,312.

The short interest in Apple for the period that ended on October 15 was up 3.6%, or 3,111,471, from the number at the beginning of the two weeks.

The concerns swirling around Apple fall into two categories. The first is whether the modest upgrades of the iPhone 6s will be enough to keep momentum in the latest version of the smartphone growing. It may be that people will stay with their iPhone 6 models and not upgrade, despite aggressive sales tactics by Apple’s U.S. carrier partners and probably those overseas.

The second issue is whether Apple can fulfill its plans to make China its most important market. China has the largest wireless subscriber market by far. The People’s Republic has just above 1.2 billion mobile users, barely shy of the country’s total population. Apple CEO Tim Cook has had to calm investors who worry that competition in China or a slowing economy there have hurt iPhone sales. In the quarter that ended July 21, $13.2 billion of Apple’s total $49.6 billion came from “Greater China.” This number was higher by 112%, compared to the same quarter a year ago. Apple’s total revenue improvement was 33% for the period.

The quarter that will include holiday sales also needs to show a sharp increase in Apple revenue. Like many other companies, Apple relies on the holiday period for much of its sales. With an aging iPhone line, that improvement may be harder to come by. So, Apple’s forecast for the period will be as critical to the prospects of its shares as much as anything else.

ALSO READ: The 6 Most Shorted Nasdaq Stocks

Finally, the iPhone 7 is expected to be released next year. Some iPhone 6 owners will wait for that event, and this will put downward pressure on iPhone sales for the time being.

Recent short sentiment mirrors the ambivalence about Apple’s near-term prospects.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.