Tech giant Apple (NASDAQ:AAPL) is facing stiff competition from its rivals in China. According to Counterpoint Research, AAPL’s Chinese iPhone sales declined by 24% year-over-year in the first six weeks of the year as it faced rising competition from companies like Huawei. In contrast, Huawei saw its smartphone sales soar by 64% during the same period.
Apple’s market share in China currently stands at 15.7%, falling from second to fourth place year-over-year. Huawei’s market share expanded to 16.5% from 9.4% and was in second place. Overall, the smartphone market in China contracted by 7%.
Apple recently slashed iPhone prices by RMB1,300 through Alibaba’s (NYSE:BABA) flagship store, Tmall, and by 500 yuan on its official websites last month.
Is Apple a Buy or Sell?
Analysts remain cautiously optimistic about AAPL with a Moderate Buy consensus rating based on 16 Buys, eight Holds and one Sell. Over the past year, AAPL stock has gained by more than 14%, and the average AAPL price target of $204.58 implies an upside potential of 16.8% at current levels.
