Apple’s (NASDAQ:AAPL) shipments of Chinese iPhones skyrocketed by 12% year-over-year in March to 3.75 million units, according to government data cited by a Bloomberg report. This was a huge turnaround from the 37% slump in iPhone sales seen in the first two months of 2024. The iPhone maker was able to execute this turnaround after the company and its resellers started slashing iPhone prices at the beginning of this year.
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Apple in China
Interestingly, in the second quarter, AAPL saw a 10% year-over-year decline in iPhone sales, amounting to $45.96 billion. It’s worth noting that sales of iPhones contribute approximately 50% of the company’s revenues. China is a very important market for Apple, accounting for nearly a fifth of its sales.
AAPL’s Challenges in China
Apple has encountered challenges in China since last year, attributed to increasing competition from domestic players like Huawei and unofficial restrictions on iPhone usage by government agencies. According to data from the China Academy of Information and Communications Technology, foreign phone shipments, including those of Apple, declined by 27% in the first quarter of 2024.
Is Apple a Buy, Sell, or Hold?
Analysts remain cautiously optimistic about AAPL stock, with a Moderate Buy consensus rating based on 19 Buys, 12 Holds, and one Sell. Over the past year, AAPL has increased by more than 5%, and the average AAPL price target of $204.38 implies an upside potential of 12.2% from current levels.
