Apple (NASDAQ:AAPL) plans to open a new store in Shanghai, its eighth in the city. The tech giant is adding to its footprint in China even as iPhone sales plummet in the country. According to Bloomberg, Apple is planning a broader expansion in China over the next few years.
Notably, outside of the U.S., Apple’s largest retail footprint is in China, with 47 locations. The company saw its China iPhone sales plummet by nearly 24% year-over-year during the first six weeks of 2024. In contrast, Chinese tech major Huawei clocked a 64% jump in its smartphone sales. While the overall smartphone market in China has shrunk by 7%, Apple has seen its spot in this lucrative market drop to fourth from second.
For Apple, gaining market share in China could be a challenge amid U.S. tech curbs on the country. Chinese regulators are increasingly looking to foster technological self-reliance, from hardware to software. This dynamic has led to multiple top U.S. names losing out to their Chinese peers in terms of market share.
In another development, Apple reversed its stance on Epic Games, allowing the company to establish a game store in iOS. The decision from Apple comes amid rising pressure from regulators in Europe.
Is AAPL a Good Buy Now?
Apple’s share price has declined by nearly 11% so far this year. Overall, the Street has a Moderate Buy consensus rating on the stock alongside an average AAPL price target of $204.86. This points to a potential upside of nearly 20% in the company’s share price.
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