Ahead of the iPhone 16's launch, the latest research by investment firm JP Morgan showed that iPhone sales in China were continuing to grow, thanks in part to the recovery of the domestic smartphone market.
Over the past few months, JP Morgan has told its investor clients that Apple's problems in China are increasing, but that it will recover. JP Morgan raised Apple's stock price to $245 after the Worldwide Developers Conference announcement, as the upcoming Apple Intelligence is expected to bring a strong upgrade cycle to the iPhone 16 series.
Now the company reports that its sales in China have started to improve. Especially for the latest data for May 2024, JPMorgan Chase & Co. said that sales are already growing.
JPMorgan Chase & Co., citing official data from the China Academy of Information and Communications Technology (CAICT) in May, said iPhone sales were up 44% compared to April 2024. They are also up 40% compared to May 2023.
While this growth is positive, it is still lower than Apple's previous expectations. JPMorgan Chase & Co. said that at this stage of the year, the normal seasonal factor will be around 55%. Overall, Chinese smartphone makers are seeing encouraging growth, but at lower than usual levels. According to the China Academy of Information and Communications Technology, total smartphone shipments in May 2024 increased by 26% year-on-year and 16% year-on-year.
Apple's sales fell 8% year-over-year in May. In January 2024, Apple's sales fell by 38% year-on-year. So far this year, though, Apple's sales have risen 17 percent. That's still lower than Apple's previous 20% market share in China. While Apple is still facing problems in China in general, the current trend is towards recovery. All analysts now expect Apple Intelligence to drive the iPhone 16.
However, the iPhone16 series to be released at Apple's autumn conference will usher in the front hard steel of the Huawei Mate70 series, and it is worth looking at who can be more attractive and sticky.
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