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Apple Inc.
13-12-2019, 09:41 PM.
Post: #451
RE: Apple Inc.
Apple stock dips after Credit Suisse says iPhone shipments drop 35% in China
* iPhone shipments in China dropped 35.4% in November compared to the same time last year, Credit Suisse analysts say Thursday, despite a slight increase in the Chinese smartphone market at the same time.
* Apple stock is down slightly Thursday.
* The analysts cite the looming Dec. 15 deadline that could see more tariffs imposed on Apple products as part of the ongoing U.S.-China trade war.

William Feuer
PUBLISHED THU, DEC 12 20198:26 AM EST
UPDATED THU, DEC 12 20193:03 PM EST

Chinese consumers are cooling on the iPhone, according to a new report by Credit Suisse analysts.

IPhone shipments in China dropped 35.4% in November compared with the same time last year, the analysts wrote in a note Thursday, despite a slight increase in the Chinese smartphone market at the same time. The analysts said Chinese iPhone sales declined 10.3% year over year in October, making this the second straight month of double-digit percentage drops.

Since the launch of the iPhone 11 family, total shipments in China are down 7.4% compared with last year, the analysts said, adding that “we estimate China iPhone revenue fell by >17.5% y/y over the past three months (Sept-Nov).”

Apple’s stock was down slightly Thursday.

The analysts cited the looming Dec. 15 deadline that could see more tariffs imposed on Apple products as part of the ongoing U.S.-China trade war as more cause for concern. The analysts wrote that a 15% tariff could increase U.S. iPhone costs by almost $70 per unit.

“Our (and we believe investors’) base case continues to factor in a favorable resolution (i.e., no tariffs); however, we think Apple would have a difficult time pushing through tariff-related price increases to U.S. consumers (~35% of CY18 iPhone units, per Gartner) without a commensurate impact on demand.”

The analysts also pointed to aggressive local competition from Chinese manufacturers as a reason for the drop in sales. The analysts’ rating of Apple remains neutral, and they announced a price target of $221 per share in October.

Apple has had a hard time in China recently. In the second quarter of 2019, its shipments declined 14% year over year while its market share dropped to 5.8% from 6.4% in the same period last year, according to market research firm Canalys.

Apple analysts were nonetheless optimistic about the performance of the latest iPhone line in China when it launched. Some of the new iPhone models had wait times in China of two to three weeks in September. Delivery times for devices can give an indication of consumer demand.

Leading Apple analyst Ming-Chi Kuo said in September that he expected Chinese demand for the new iPhones to beat expectations.

“The demand for iPhone 11 in the Chinese market is stronger than that in the U.S. market,” Kuo said at the time.

More details in https://www.cnbc.com/2019/12/12/iphone-s...-says.html
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09-01-2020, 07:46 PM.
Post: #452
RE: Apple Inc.
Apple's iPhone sales in China up 18% in December: government data

Reporting by Josh Horwitz; editing by Jason Neely
JANUARY 9, 2020 / 6:32 PM

SHANGHAI (Reuters) - Sales of Apple Inc’s (AAPL.O) iPhone in China in December jumped more than 18% year on year, government data showed on Thursday.

China is gearing up for the Lunar New Year in late January, a major gift-giving holiday.

Apple shipped roughly 3.2 million phones in China in December, data from the China Academy of Information and Communications Technology and Reuters calculations showed.

That was up from 2.7 million a year earlier.

After a peak period in 2015, iPhone sales in China stagnated due to factors including longer upgrade cycles and competition from Chinese rivals.

Sales of phones from China’s Huawei Technologies Co Ltd have boomed while overseas the company has faced political pressure from Washington over its technology.

In the third quarter of 2019, Huawei accounted for 42% of new phone shipments in China, according to research firm IDC.

Throughout 2019, Apple offered discounts and financing schemes aimed at boosting sales in China.

In the company’s last earnings call, CEO Tim Cook suggested that such initiatives were successful in attracting more Chinese consumers.

More details in https://www.reuters.com/article/us-apple...Z81CP?il=0
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