SHANGHAI, CHINA – MARCH 21: Tim Prepare dinner, chief government officer of Apple Inc., arrives for opening ceremony of the brand new Apple Jing’an retailer on March 21, 2024 in Shanghai, China. The brand new Apple retailer opens on March 21 in Shanghai’s Jing’an district. (Picture by VCG/VCG by way of Getty Photos)
Vcg | Visible China Group | Getty Photos
Apple may double down on the China smartphone market amid declining iPhone gross sales and stiff competitors within the nation, Wedbush Securities stated on Monday.
Apple wants to beat its China challenges together with a tricky macro surroundings and competitors from Huawei earlier than the iPhone 16 launch and “all of it begins with reaffirming Apple’s presence in China,” Wedbush stated.
China’s Minister of Commerce Wang Wentao met Apple CEO Tim Prepare dinner on Friday and stated his nation holds alternatives for Apple in addition to different firms, and requested the iPhone maker to maintain constructing its enterprise in China for “shared growth,” based on a press assertion.
Prepare dinner stated China was a vital provide chain associate for Apple and the corporate plans to extend funding within the nation in the long run, the assertion stated.
Final week, Prepare dinner opened Apple’s latest flagship retailer in Shanghai on Thursday and met with key suppliers in China, based on media stories. He additionally attended the China Improvement Discussion board in Beijing, as China seeks to woo international traders amid regulatory and international uncertainties.
Prepare dinner’s newest journey to China, which Wedbush stated is “an indication Apple may double down” on China, comes amid stories of iPhone gross sales in China plunging 24% within the first six weeks of 2024.
Apple is working in a difficult surroundings in its largest abroad market, China, because it faces stiff competitors from native Chinese language smartphone makers, notably Huawei, whose client enterprise is experiencing a resurgence within the nation after the launch of its Mate 60 smartphone.
“The timing of this journey was vital as in essence Apple wants China and China wants Apple regardless of all of the noise,” Wedbush stated.
Covid-19 lockdowns in China in late 2022 majorly disrupted Apple’s provide chain, which prompted the tech agency to diversify a few of its manufacturing to international locations similar to India and Vietnam.
“Nevertheless, the overwhelming majority of its iPhone manufacturing and suppliers will stay in China,” Wedbush stated whereas sustaining its “outperform” ranking and a $250 worth goal on Apple.
Apple is presently going through regulatory challenges within the U.S. and EU and whereas its gross sales have dropped in China this yr, the corporate final yr emerged because the nation’s greatest smartphone provider.
The U.S. Division of Justice sued Apple on Thursday, alleging the tech agency illegally maintains a monopoly over smartphones. The EU on Monday opened an investigation into Apple in relation to the so-called anti-steering guidelines.
