Quiver Quantitative - Apple (NASDAQ:AAPL) (AAPL) iPhone shipments in China increased by 12% in March after the tech giant and its retailers implemented price cuts, according to data from the China Academy of Information and Communications Technology (CAICT), a research firm affiliated with the Chinese government. Shipments of foreign-branded phones in China reached 3.75 million units in March, up from 3.35 million a year earlier, with Apple as the dominant foreign phone maker benefiting from the surge.
Apple's strong performance followed aggressive discounting efforts led by the company and third-party sellers before March. Some iPhone 15 models were offered at discounts of up to 10%. The price cuts effectively stimulated demand, driving Apple's growth in the Chinese market and marking a significant turnaround from the 37% slump in sales during the first two months of 2024.
Market Overview: -Apple's iPhone shipments in China rebounded by 12% in March, reversing a slump in the first quarter of 2024. -Stock is flat on the day.
Key Points: -Price cuts implemented by Apple and retailers are credited with stimulating demand. -The surge follows a 37% sales decline in the first two months of the year. -Apple remains the dominant foreign phone maker in China despite competition from Huawei.
Looking Ahead: -Apple's pricing strategy appears effective in countering competition and driving sales in China. -Continued success hinges on maintaining consumer interest through competitive pricing and product innovation. -The Chinese market remains crucial for Apple's future growth.
Despite the positive March performance, Apple's smartphone shipments in China declined by 19% during the first quarter of 2024, marking the worst performance since 2020, according to research firm Counterpoint. The slump was primarily attributed to the successful launch and sales of a high-end smartphone by Huawei in August of the previous year. However, Apple's efforts to regain market share through strategic pricing have started to pay off.
In the Greater China region, Apple reported sales of $16.37 billion for the fiscal second quarter ended March 30, down 8.1% but surpassing analyst expectations of $15.59 billion, according to Visible Alpha data. Although challenges remain, Apple's rebound in March is a promising sign that the company is regaining traction in the competitive Chinese smartphone market.
This article was originally published on Quiver Quantitative