Apple (NASDAQ:AAPL) faces increasing competition from domestic companies in China regarding its iPhone. According to market research firm IDC, Apple’s iPhone shipments in China declined by 2.1% year-over-year due to intense competition from local Chinese companies like Huawei.
Apple faces challenges in China as some companies restrict device usage, echoing U.S. restrictions on Chinese apps. Moreover, Huawei launched new smartphones last year, intensifying the competition. In the calendar fourth quarter of 2023, Huawei’s shipments rose 36.2% year-over-year and had a 13.9% market share of the country’s smartphone market.
Apple was the pack leader in FY23, with a market share of 17.3%, but analysts predict sales to be pressured in 2024 due to rivals and limited product upgrades. However, IDC noted that demand for Apple’s iPhones remained high, bolstered by substantial discounts and promotions.
According to IDC, China’s smartphone market saw shipment volumes of 73.63 million units in Q4 and 271 million units for FY23, down by 5% year-over-year.
Is Apple Stock a Buy or Sell?
Analysts remain cautiously optimistic about AAPL, with a Moderate Buy consensus rating based on 23 Buys, eight Holds, and one Sell. Over the past year, AAPL stock has surged by more than 35%, and the average AAPL price target of $203.52 implies an upside potential of 4.2% at current levels.
