Apple (AAPL), as can be seen from the information revealed by the analysts from Counterpoint Research, facing a growing problems from the fact that the iPhone sales dropped above 19% from the last year in China, which is the lowest figure since the beginning of Covid Pandemic in 2020. Huawei's acting as a would-be pick-me-up for the province is a second cause of its problems.
 |
| Photo: Amanz/Unsplash |
MADISON MILLS: The big tech sector was dominated by Magnificent 7 recently that includes Alphabet Inc., Amazon.com Inc., Apple Inc., Facebook Inc, Microsoft Corp and last but not least the, Tesla, Inc. To begin with, talk about Tesla's meteoric rise in the EV market. Tencent and Baidu are going to start on Wednesday and then there will be Microsoft and Alphabet on Thursday. Last week, the states witnessed the rise of giants such as Amazon and Apple.
Among the seven stocks seen as a-ratings, there are two that are currently showing loss for the year. My chosen institutions are Tesla and Apple.Apple off around 13%. Tremble under such an array of threats like a key time in Wall Street, legal clashes, getting defocused the EV projects and increased demand for smart phones.
On the other hand, the chipmaking industry forum shared contradicting research that Apple's China iPhone sales had fallen 19% in the first quarter.
This really is the very nature of risk that analysts have been mentioning for a number of months of now. It is a matter of the re-establishment of Huawei in the premium smartphone market in China, the clash between the different brands that comes with it and how this is likely to affect the volume of iPhone sales units in the country.
As you are describing, the shadow over the technology titan that Counterpoint Research shows 19% drop in the quarter while the sales figures of smartphones were still up in China. There we witnessed the sequential growth rate of around 4.6% for the latest quarter. Hence, the country's significance to the Apple in China is also one of the major worry due to the fact that it is the second-largest market outside the North America.
A look into the report provided by a research firm known as Counterpoint Research, which is presented here, might reveal the market breakdown. Vivo and Honor brands are being effectively marketed by the local smartphone makers and also occupying the first and the second positions, but May Huawei will be able to intensify the competition with even higher growth rate of 15.5 percent only comparing it to the same period of the previous year. We mean more than a 67% growth rate or even a little less than that.
It is because of this preeminence of Mate 60 Pro the flagship smartphone of Huawei in the world market and not the mass production of the number of phone units in that fall. It was considered to be a great victory over US export restrictions but not for sure the statemedia in China. Moreover, Research speaking for the release of that just into the end of the quarter as the primary cause why Apple got sales down in China.
At present, the geopolitical risks that have become significant are added. Do you remember that 1 year ago Apple's core businesses, namely, government institutions and government-supported companies, had taken the measure to ban iPhones for their employees? In fact, that translates into a major hurdle for the country on its way to recovery. Indeed, Apple's shares are down by 14% this year [compared to the current performance]. I don’t have anywhere else to go, but knowing that whatever next week has in store for us, China will be a significant concern.
Take a glimpse at China, the region that plays the major role in Apple's trade, this highlights the importance of China in trade matters for this company. Greater China constitutes about 20%, which approaches about 21% of its revenue, to be more precise for Apple.
Thus, what are we moving forward with the company? Well, the route that Tim Cook has taken in this company in the last few months is what you can follow. Do recall that last month he was at the China Development Forum, markedly taking sides with the Chinese markets, proclaiming that he was delighted to see that country opening up its market to importantly businesses.
However, in the midst of this week, he has paid to Southeast Asia the most intensive visit he has gone so far, Singapore, Vietnam, and Indonesia. His target was to explore from where Apple can expand its manufacturing sites as well as the fact that the company can venture to Asia outside of China.
Don't forget that phone market has been going down in India in correlation with what they did, which demonstrates the risk Apple sees around this bend. It is obvious they had been workshopping that move to diversify beyond and for quite some time, but China still remains their main market. It should be noted that the company will have lost 19% of its daily sales amount, which is not so good news.