Apple’s sales of its new iPhone 16 surged 20% in China during its first three weeks, as reported by Bloomberg with data from Counterpoint Research. Despite fierce competition, this growth reflects a shift towards premium models, with sales of the Pro and Pro Max variants soaring by 44% year-over-year. These figures indicate a stronger launch for the iPhone 16 compared to its predecessor.
The Resilience of iPhone 16 in China
The iPhone 15 faced challenges with production and competition from Huawei’s Mate 60 series. In contrast, Counterpoint analyst Ivan Lam noted a smoother production ramp-up and steady pricing strategy for the iPhone 16. He highlighted a significant uptick in customers opting for higher-end models. Nevertheless, China’s cutthroat smartphone market features constant releases from local giants like Vivo, Xiaomi, and Oppo.
The Significance of iPhone Sales for Apple
Apple heavily depends on iPhone sales, which contribute over half of its total revenue. China remains a crucial market for Apple’s iPhones, indicating that strong sales in this region will be pivotal for the success of the iPhone 16 throughout its lifespan.
Forecasting Apple Stock Performance
Analysts hold a cautious yet optimistic view on AAPL stock, with a Moderate Buy consensus rating based on 23 Buys, 10 Holds, and one Sell. Over the past year, AAPL has surged by more than 30%. The average price target of $248.90 suggests a potential upside of 7.2% from current levels.
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