Apple Stock Down As China Shipment Declines

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Apple Stock Down As China Shipment Declines

Apple Stock Down By 0.5% As China'S Shipment Declines

The latest data shows that iPhone shipments to China during Q1 2023 moved lower by 2.1%. The iPhone mobile models faced tough competition from Chinese rivals such as Huawei.

These numbers show that Apple is struggling in China, its 3rd biggest market in terms of users & revenue. While we discuss the lower iPhone sales, it is also important to note that the Chinese government has put some restrictions on Apple devices.

Huawei'S Sales Up By 36.2%

The restrictions set forth by the Chinese authorities are similar to what the USA did to various Chinese phone makers and app developers.

Huawei scored a 36.2% improvement in shipments. These numbers become even more impressive when considering that the US has sanctioned the company on multiple fronts.

Throughout the year, Apple has managed to secure a market share of 17.3% and has even surpassed the Chinese phone maker 'Vivo.' This year, it will become even more difficult for Apple to replicate these numbers as the company faces more competition.

According to IDC, Apple faces problems in the Chinese market, such as fierce competition, less appeal for iPhone models, and fewer iPhone upgrades.

Jefferies also painted a similar picture a few weeks ago, showing that Apple's iPhone sales have decreased by double digits. At the same time, Jefferies hinted at a more robust market presence for Huawei in the Chinese market.

For 2024, the annual shipment number for Huawei's smartphones will be close to 64 million units, according to a forecast. In 2023, Huawei's number was 35 million, which suggests a significant change for this year.

Looking forward, Apple will announce its quarterly numbers, which could spark some volatility in the stock. After the announcement of weak sales in China, Apple's stock declined by around 0.5%, highlighting the market's pessimism.

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