Apple’s sales of its new iPhone 16 surged 20% in China during the initial three weeks, as reported by Bloomberg through data provided by Counterpoint Research. This growth signifies a shift towards premium choices among Chinese consumers, with the pro and Pro Max models seeing a 44% increase in sales year-over-year. These figures indicate a more robust beginning for the iPhone 16 compared to its predecessor.
Reasons behind AAPL’s iPhone 16 Success in China
The iPhone 15 faced obstacles during its launch due to production issues and stiff competition from Huawei’s Mate 60 series. In contrast, the iPhone 16 enjoyed a smoother production ramp-up, a stable pricing strategy, and a surge in upgrades by devoted users, according to Counterpoint analyst Ivan Lam.
The iPhone product mix notably improved, with a rising number of customers opting for higher-end models. However, the Chinese smartphone market is fiercely competitive, with Vivo, Xiaomi, and Oppo constantly introducing new devices.
Significance of iPhone Sales for AAPL
Apple’s iPhone remains a pivotal revenue source, accounting for more than half of its total earnings. China specifically holds a critical position in AAPL’s iPhone sales, with performance in this region playing a crucial role in determining the iPhone 16’s success throughout its lifecycle.
Projection of Apple Stock’s 12-month Price Target
Analysts maintain a cautious optimism towards AAPL stock, with a Moderate Buy consensus based on 23 Buys, 10 Holds, and one Sell. Over the past year, AAPL has surged by over 30%, with an average price target of $248.90 suggesting a 7.2% upside potential from current levels.
