Apple's iPhone Sales Faces Sharp Decline in China Amid Rising Competition
Portfolio Pulse from Anusuya Lahiri
Apple Inc (NASDAQ:AAPL) has seen a significant decline in iPhone shipments in China, with a 33% drop in February year-over-year, following a 39% reduction in January. This downturn is attributed to rising competition, particularly from Huawei Technologies Co, and a broader slowdown in China's smartphone market. Despite this, Apple plans to launch its Vision Pro headset in China by 2024. The company's stock has gained 8% over the last 12 months, and exposure to AAPL can be gained through ETFs like Vanguard Information Tech ETF (NYSE:VGT) and SPDR Select Sector Fund - Technology (NYSE:XLK).
March 26, 2024 | 4:58 pm
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Apple Inc faces a significant decline in iPhone shipments in China, with a 33% drop in February year-over-year, amid rising competition and a market slowdown.
The sharp decline in iPhone shipments in China, a crucial market for Apple, due to increased competition and a general market slowdown, is likely to negatively impact investor sentiment and AAPL's short-term stock performance.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Vanguard Information Tech ETF, which offers exposure to AAPL, may be indirectly impacted by Apple's declining iPhone sales in China.
Given VGT's exposure to AAPL, the ETF might experience indirect negative impacts due to the downturn in Apple's iPhone sales in China, potentially affecting its short-term performance.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60
NEGATIVE IMPACT
SPDR Select Sector Fund - Technology, which includes AAPL in its holdings, could be indirectly affected by the downturn in Apple's iPhone sales in China.
As XLK holds AAPL in its portfolio, the ETF could face indirect negative impacts from the decline in iPhone sales in China, potentially influencing its short-term performance.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60