Apple’s (AAPL) iPhone sales in China rose in the second quarter for the first time in two years.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Data from Counterpoint Research shows that the consumer electronics giant is experiencing a turnaround within China, its second biggest market globally after the U.S. Sales of iPhones in China rose 8% year-over-year in the three months ended June 30, according to Counterpoint Research.
It’s the first time Apple has recorded growth in its China iPhone sales since the second quarter of 2023. The ongoing decline in Apple’s China sales has been partially responsible for the company’s stock falling 13% this year.
iPhone Promotions
Sales of Apple’s signature iPhone got a boost in May as Chinese e-commerce firms discounted the newest model of the device, said Counterpoint Research. Apple also increased trade-in prices for older model iPhones, prompting Chinese consumers to upgrade to the newest iPhone 16.
Apple’s stock has faced numerous headwinds this year, ranging from slowing iPhone sales globally and a lack of artificial intelligence (AI) products to tariffs and trade skirmishes. U.S. President Donald Trump has threatened Apple with tariffs and urged the company to move manufacturing of the iPhone to America.
Huawei Competition
But China, in particular, has been a problem for Apple ever since domestic rival Huawei won over Chinese consumers with the release of a smartphone that contains a more advanced microchip. Huawei has aggressively launched new smartphones and eaten away at Apple’s market share in recent years.
Indeed, Huawei’s sales again beat Apple’s, rising 12% year-over-year in this year’s second quarter, according to Counterpoint Research. Huawei remains the biggest smartphone player in China by market share, followed by Vivo and then Apple in third place.
Is AAPL Stock a Buy?
The stock of Apple has a consensus Moderate Buy rating among 27 Wall Street analysts. That rating is based on 15 Buy, 10 Hold, and two Sell recommendations assigned in the last three months. The average AAPL price target of $226.36 implies 5.94% upside from current levels.
