[ad_1]
SHANGHAI, CHINA – MARCH 21: Apple CEO Tim Cook attends the opening ceremony of the new Apple Jing’an store on March 21, 2024 in Shanghai, China. A new Apple Store will open in Shanghai’s Jing’an District on March 21st. (Photo courtesy of VCG/VCG, Getty Images)
Video Visual China Group | Getty Images
Wedbush Securities said Monday that Apple could double down on China’s smartphone market amid declining iPhone sales and intense competition in China.
Apple needs to overcome challenges in China, such as the harsh macro environment and competition from Huawei, before the release of iPhone 16, and Wedbush said, “Everything starts with reaffirming Apple’s presence in China.” said.
Chinese Commerce Minister Wang Wentao met with Apple CEO Tim Cook on Friday and said the country presents opportunities for Apple and other companies, according to a press release. He urged them to continue building their business in China for the sake of “development.” .
In a statement, Cook said China is an important supply chain partner for Apple and the company plans to increase investment in the country over the long term.
Last week, Cook opened Apple’s newest flagship store in Shanghai on Thursday and met with key Chinese suppliers, according to media reports. He also attended the China Development Forum in Beijing, as the country seeks to attract foreign investors amid restrictions and global uncertainty.
Cook’s recent visit to China, which Wedbush said is “a sign that Apple could double down on its business in China,” suggests that iPhone sales in China will rise to 24 in the first six weeks of 2024. This was carried out amid reports that the number of sales had decreased by 20%.
Apple is operating in a difficult environment in China, its largest overseas market, as it faces stiff competition from domestic smartphone manufacturers, especially Huawei. Launch of smartphone “Mate 60”.
“The timing of this trip was important because, despite all the noise, essentially Apple needs China and China needs Apple,” Wedbush said.
The coronavirus lockdown in China in late 2022 caused major disruptions to Apple’s supply chain, prompting the tech company to diversify some of its production to countries such as India and Vietnam.
“However, the majority of iPhone production and suppliers will remain in China,” Wedbush said, maintaining Apple’s “outperform” rating and $250 price target.
Apple currently faces regulatory challenges in the United States and the European Union, and although sales in China have declined this year, the company emerged last year as the country’s largest smartphone supplier.
The U.S. Department of Justice filed a lawsuit against Apple on Thursday, accusing the company of illegally maintaining a smartphone monopoly. The EU launched an investigation into Apple on Monday in connection with so-called anti-steering rules.
[ad_2]
Source link
