Apple's iPhone Sales Dip 24% in China, Falls to Fourth Place Behind Vivo and Huawei
Portfolio Pulse from Anusuya Lahiri
Apple Inc's iPhone sales in China dropped 24% in the first six weeks of the year, placing it fourth among smartphone vendors in the country. The decline was attributed to a 7% contraction in China's overall smartphone market and strong performances by Vivo and Huawei, with Huawei's market share increasing to 16.5%. Apple's market share fell to 15.7%. In response, Apple introduced discounts and promotions. Investors can gain exposure to Apple through ETFs like Vanguard Information Tech ETF (VGT) and SPDR Select Sector Fund - Technology (XLK). AAPL shares dropped 2.25% in premarket trading.
March 05, 2024 | 12:55 pm
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NEGATIVE IMPACT
Apple's iPhone sales in China fell 24%, causing its market share to drop to 15.7%. The company introduced discounts to stimulate demand.
The significant sales drop and market share decline in a key market like China, despite discounts, suggests a negative short-term impact on AAPL's stock.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
VGT, which offers exposure to Apple, may be indirectly affected by Apple's sales decline and market share drop in China.
As an ETF with exposure to Apple, VGT might experience a negative impact due to Apple's performance issues in China, albeit indirectly.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
NEGATIVE IMPACT
XLK, which includes Apple in its holdings, might see a short-term negative impact due to Apple's declining sales and market share in China.
Given Apple's significant role in XLK's portfolio, the tech giant's sales decline in China could negatively influence XLK's short-term performance.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60