Apple’s (NASDAQ:AAPL) iPhone shipments jumped by 40% year-over-year in May. This continued the rebound in smartphone shipments seen in April, according to data from the China Academy of Information and Communications Technology (CAICT), which is affiliated with the Chinese government.
More Insights About AAPL From the Data
Shipments of foreign-branded phones in China rose to 5.028 million units in May, up from 3.603 million in the same period a year earlier. It is important to note that while the CAICT data did not explicitly mention AAPL, the Cupertino-based company is a dominant foreign player in the Chinese smartphone market.
According to a Bloomberg report, overall smartphone shipments went up by 13% in May, but smartphone shipments of foreign brands (of which AAPL comprises the majority) grew by almost four times.
How Did AAPL Achieve a Sales Rebound in China?
AAPL’s iPhone shipments started bouncing back in March, partly because the company and its Chinese resellers have been slashing prices since the start of this year, with the price deals extending into the Chinese shopping festival on June 18. Before that, the company was struggling in China as it was facing rising competition from local Chinese players like Huawei Technologies. China is a major smartphone market for AAPL.
AAPL generates a majority of its revenues from iPhones. The tech giant clocked iPhone sales of $51.33 billion in the March quarter, comprising more than 50% of the company’s total revenues of $94.84 billion.
Is Apple a Buy, Sell, or Hold Stock?
Analysts remain cautiously optimistic about AAPL stock, with a Moderate Buy consensus rating based on 24 Buys, 10 Holds, and one Sell. Over the past year, AAPL has increased by more than 10%, and the average AAPL price target of $217.19 implies an upside potential of 1.4% from current levels.
