Apple’s (AAPL) iPhone sales in China experienced a modest increase in July, rising by 2.7% year-over-year. This data was released by the government-affiliated research firm, the China Academy of Information and Communications Technology (CAICT). The CAICT reported that during the month, sales of foreign-branded phones in China reached 2.38 million units, up from 2.315 million a year earlier.
While this growth bodes well for the tech giant, it comes amid a broader surge in China’s overall phone market, which saw a significant 30.5% increase in sales, totaling 24.2 million handsets in July, according to CAICT data.
AAPL Slashes Jobs in the Digital Services Group
However, on the corporate front, Apple has taken a surprising and rare step by slashing around 100 jobs in its digital services group, according to an exclusive Bloomberg report. The affected employees, who were part of several teams under Senior Vice President Eddy Cue’s services group, were informed on Tuesday. The layoffs, which included some engineering roles, primarily impacted the team responsible for the Apple Books app and Apple Bookstore. Additionally, there were cuts in other services teams, such as the one managing Apple News.
Layoffs Are Uncommon at AAPL
It’s important to note that layoffs are an uncommon occurrence at Apple, though this year has seen at least four rounds of reductions. Earlier this year, Apple laid off hundreds of workers when it shut down its self-driving car project and halted its microLED display initiative. The company also shut down a team in San Diego, further emphasizing its strategic realignments.
Is Apple a Buy or Sell Now?
Analysts remain cautiously optimistic about AAPL stock, with a Moderate Buy consensus rating based on 24 Buys, nine Holds, and one Sell. Over the past year, AAPL has increased by more than 20%, and the average AAPL price target of $247.61 implies an upside potential of 8.6% from current levels.
