weakeningof Apple's stock market position preceding the unveiling of the iPhone 17 in China
Apple's latest offering, the iPhone-17, is set to hit the markets soon, and pre-orders globally have shown a promising 5-10% increase compared to last year. This positive trend, however, is overshadowed by concerns about the sales situation in China, the second-largest individual market for Apple, which accounts for nearly 20% of the company's revenue.
The launch of the iPhone-17 has been met with anticipation, but regulatory delays in China due to the eSIM function could cause short-term hurdles, putting pressure on the mood beforehand. Counterpoint Research reports a 6% decrease in iPhone sales in China in the weeks leading up to the iPhone-17 launch, a decline that is more pronounced than usual.
This sales slump in China is causing concern for Apple as customers are holding off on purchases before the new model is released. The competition in China is fierce, with brands like Huawei and Xiaomi expanding their market share during the same period. Xiaomi, in particular, is attractive due to its aggressive pricing in the global market.
Despite these challenges, renowned Apple analyst Ming-Chi Kuo predicts better demand for the new iPhone-17 generation compared to its predecessor. The new iPhone 17 Air, an ultra-thin model, is seen as a key driver for global pre-orders. Firms like Wedbush Securities expect a strong upgrade wave for the iPhone 17 by the end of the year.
Investors are looking at the Apple stock with mixed feelings due to the sales decline in China. However, Wedbush Securities has set a price target of $270 for Apple stock, indicating further potential. The global market, excluding China, is showing positive signals for Apple.
It's important to note that the competitive landscape in China is evolving rapidly. Chinese competitors, supported by platforms like Douyin, are trying to displace Apple in the premium segment. Although specific brand names are not given in the sources provided, it's clear that Apple faces stiff competition in its home market.
The new iPhone-17 is expected to launch soon, but the sales performance in China, particularly, is a significant factor in determining its overall success. The iPhone-17's success will play a crucial role in Apple's ability to maintain its global dominance in the premium segment. The regulatory hurdles in China could be a temporary setback, but the long-term prospects for the iPhone-17 remain promising.
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