Apple (AAPL) iPhone sales rose in China in April as shipments of foreign-branded smartphones in the region increased 52%, according to the China Academy of Information and Communications Technology (CAICT). The turnaround came after Apple’s sales there declined by double digits.
Yahoo Finance host Akiko Fujita joins Catalysts to analyze Apple’s sales in China and what it means for the company’s future.
Read more about Apple’s troubles in China here.
To learn more about expert insights and the latest market trends, click here to watch this full episode of Catalysts.
This post Nicholas Jacobino
Video Transcript
Now let us discuss trend tickers on financial platforms.
Apple shares are rising on news that iPhone sales in China are recovering, with shipments up 52% in April.
What does this mean for the company, and how important is this to us personally?
Considering that roughly 20% of Apple’s revenue comes from China, this will come as a huge relief to investors.
As you point out, the stock is still down this year, but it’s up about 1% and that’s reflected in the share price movement.
Now, the latest data comes from the China Academy of Information and Communications Technology, a research firm.
This represents a 52% increase in shipments of foreign brands in a month when overall smartphone shipments continued to gain momentum.
The data doesn’t specify Apple figures, but the 3.5 million units shipped are largely due to Apple, given that the company remains the dominant foreign brand in the market.
This momentum follows a recovery seen in March.
The company’s double-digit declines so far this year come on the heels of an aggressive price-cutting strategy from the tech giant in February, when Apple’s third-party retailers began slashing prices on devices by up to 10%, seen as a direct response to the recent competition it faces from Huawei in the premium smartphone market.
Let’s not forget that since launching its own premium smartphone last fall, the domestic manufacturer has slowly been eating away at Apple’s market share, causing Apple’s shipments to fall by 19%.
The company reported a roughly 8% decline in revenue in Greater China in its most recent quarter during the first three months of the year.
Well, Apple’s numbers were strong.
Further momentum is expected to pick up in April, thanks to aggressive price reduction campaigns.
Earlier this month, the company ran a sale at its Tmall stores, slashing prices of select iPhone models by up to $320.
Investors are surely hoping this is the start of a sustained surge as Apple and Huawei continue their fierce battle for the world’s second-largest smartphone market.
