Analyst Predicts Continued Slide For Apple In China Despite New Releases
Portfolio Pulse from Ananya Gairola
Jefferies research note predicts further declines in Apple Inc.'s (AAPL) iPhone sales in China, despite new releases. Sales dropped 30% year-on-year and are expected to continue falling into 2024. Discounts haven't led to volume growth, and Apple's market share is affected by Huawei's resurgence with its Mate 60 Pro. The U.S. sanctions have led Huawei to develop its own software ecosystem. Apple's sales are also impacted by China's ban on Apple devices for state-backed firms and government departments, contributing to the sales decline.
January 08, 2024 | 11:54 am
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Apple Inc. is expected to face continued declines in iPhone sales in China, with a 30% year-on-year drop and no significant volume growth despite discounts. Huawei's new Mate 60 Pro and China's ban on Apple devices for state entities are key factors.
The negative outlook from Jefferies, based on the recent sales performance and competitive pressures from Huawei, suggests a bearish short-term impact on Apple's stock. The state ban on Apple devices further exacerbates the situation, indicating a high relevance and importance of this news for investors. The confidence score reflects the credibility of the source and the clear evidence of a sales decline.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 100