Apple’s (AAPL) iPhone sales in China slipped by 0.3% in the third quarter, according to a Reuters report citing IDC research. Meanwhile, the tech giant’s Chinese rival, Huawei, saw its iPhone sales surge by 42% in the third quarter.
Furthermore, AAPL reached second place with a market share of 15.6%, while Huawei’s market share in China increased by 4.2% to 15.3%. The data indicated that Vivo was the top smartphone seller in China, with a market share of 18.6%. Vivo primarily sells budget phones.
Overall, smartphone sales in China rose by 3.2% in the third quarter to reach 68.78 million units.
Why Did AAPL’s iPhone Sales Dip in China?
Apple is facing fresh challenges in China, one of its key markets, as some government agencies imposed restrictions on the use of the iPhone. In response to these regulatory headwinds, the U.S. tech giant quickly rolled out a series of discount campaigns to boost sales.
In addition, AAPL’s third-quarter performance received a boost with the launch of the iPhone 16 on September 20. Interestingly, this launch coincided with Huawei’s release of a rival tri-foldable phone, setting the stage for rising competition in the Chinese market. However, the new iPhone models were still popular in China, with sales climbing 20% higher in the first three weeks compared to the 2023 lineup, according to data from research firm Counterpoint.
IDC further expects that Apple’s market presence in China is likely to continue to grow, driven by a rise in promotional activities and the upcoming release of the Apple Vision Pro. In fact, IDC predicts that demand for the iPhone 16 series will gradually strengthen in the coming months.
What Is the Target Price for AAPL?
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 increased by more than 30%, and the average AAPL price target of $248.34 implies an upside potential of 7.7% from current levels.
