Apple’s (AAPL) sales of its new iPhone 16 surged 20% in China during its first three weeks, according to an exclusive Bloomberg report citing data from Counterpoint Research. Despite tough competition, this growth shows that Chinese consumers are leaning more towards premium variants, with sales of the high-end Pro and Pro Max models rising by 44% year-over-year. These numbers suggest that the iPhone 16 is off to a stronger start compared to last year’s launch.
Why Is AAPL’s iPhone 16 Performing Well in China?
The launch of the iPhone 15 was hindered by production challenges and stiff competition from Huawei’s Mate 60 series of phones. In contrast, Counterpoint analyst Ivan Lam commented that the iPhone 16 had a “smoother production ramp-up, a steady pricing strategy, and a wave of upgrades by loyal users.”
He further noted that the iPhone product mix has improved substantially, with more customers opting for higher-end models. However, it’s crucial to recognize that the smartphone market in China is highly competitive, with local brands like Vivo, Xiaomi, and Oppo continually releasing new devices.
Why iPhone Sales Are Important for AAPL?
Apple’s iPhone remains an important component of its business, generating more than half of its total revenue. Moreover, China continues to be a key market for AAPL’s iPhones, and sales in this region could be a critical factor in determining the success of the iPhone 16 during its product lifecycle.
What Is the 12-month Price Target for Apple Stock?
Analysts remain cautiously optimistic about AAPL stock, with a Moderate Buy consensus rating based on 23 Buys, 10 Holds, and one Sell. Over the past year, AAPL has surged by more than 30%, and the average AAPL price target of $248.90 implies an upside potential of 7.2% from current levels.
