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Apple's iPhone sales in China shot up by 52% in April

Apple's (AAPL) iPhone shipments to China shot up by 52% in April, according to the China Academy of Information and Communications Technology (CAICT), after battling slowing demand in the region in the early months of 2024.

The Morning Brief team examines this report and whether Apple's regional discounts in China has enough staying power to sustain further demand.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Luke Carberry Mogan.

Video transcript

Chinese consumers haven't given up maybe on the big tech giant just yet.

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IPhone shipments, rising 52% in April, significant jump from just the 12% climb that they saw in March.

This after a flurry of discounts coming from its retail partners in the country in an attempt to compete with some of those domestic players.

Specifically Huawei.

And some of the excitement we've seen around those new product sales may see another boost this month.

Apple launching more discounts, hoping that that is going to be enough here to lure some buyers.

And now this is just early data here.

Clearly, these numbers are not out from Apple, so we will see exactly what the demand looks like inside China when we get that next report here in just a couple of months.

Earnings report in a couple of months, when you take a look at these numbers coming out, it's important to point out, given the fact that Apple Brad has been struggling in China, you talk about the rise of domestic players.

You talk about maybe some of the backlash here just in terms of the geopolitical tensions between the US and China.

Clearly playing a role here, but they have announced new price cuts.

It's double the size of the discount that was offered back in February.

So Apple at least hoping that some of these discounts, some of these incentives is enough to lure buyers and have them be buying iPhone the iPhone instead of some of those domestic products that we have seen pick up in popularity.

It's coming off of a year, too, where they had seen success in 2023 getting to just under 20% of the global smartphone market share and ultimately looking across the number of users who it is beneficial for them to continue to sell into that ecosystem.

To put some numbers on what we're expecting going forward from here, Um, and you think about the new iPhone 16 lineup that is expected to be announced later on this year, as we're kind of looking for that next cycle that gets and and really kind of has been fragmented, depending upon the regions of the world that you're looking across for Apple but specifically here, the iPhone 16 family, that could be the next potential kind of competitive.

Um, you know, inflexion point If you look at what Huawei is doing in the M 70 lineup as well that potentially coming in October, that would keep some consumers out there.

Some potential buyers of these new smartphones, which ultimately they're they're looking for these to come in in the range of about $790 would be the equivalent there and ultimately 33% right now only or own a premium phone.

So all of that can considered.

It's gonna be the pricing on top of what the new features are that come through that iPhone 16 family.

Um, And then, just as I was teasing the number a moment ago, iPhone Smart or China's smartphone shipments actually grew 6.5% year over year in the first quarter of this year.

But it wasn't Apple that was leading that charge.

And so now it's both.

As we were mentioning the new lineup that is set to be unveiled and pricing that could really be the bang bang play for them, we'll see how that gets received in market there, too,