Latest news with #EthanQi
Yahoo
08-07-2025
- Business
- Yahoo
iPhone Sales Are Growing in China Again. Should You Buy, Sell, or Hold Apple Stock Here?
After a long dry spell, Apple (AAPL) has finally turned a corner in China. For the first time since the second quarter of 2023, iPhone sales in the nation grew 8% year-over-year (YOY) in Q2 2025. The turnaround, as per Counterpoint Research, breaks a two-year streak of declining sales in one of Apple's most strategically vital markets. Several levers drove this sudden change in tide. Apple slashed prices aggressively in May, a move timed deliberately ahead of China's 618 shopping festival. The strategy, coupled with support from a national subsidy program aimed at encouraging smartphone upgrades, triggered a noticeable spike in demand. This Analyst Just Raised His Broadcom Stock Price Target by 70%. Should You Buy AVGO Now? Why Alibaba Stock Looks Like a Screaming Buy After Falling 27% From Its 2025 Highs 2 ETFs Offering Juicy Dividend Yields of 20% or Higher Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Counterpoint Associate Director Ethan Qi confirmed that three iPhone variants landed in the top half of China's bestseller charts during 618. Though the 618 shopping period itself remained flat compared to last year, the lead-up month of May delivered the real gains. With strong demand for the iPhone 16 Pro and Pro Max models, Apple is now expected to post high single-digit growth in China for the remainder of the quarter. China remains a critical source of revenue, and if Apple maintains its current momentum, this rebound could extend deeper into the fiscal year. Apple may be synonymous with the iPhone, but the company's value story runs far deeper than any single product line. Headquartered in California, the tech giant holds a commanding market capitalization of $3.2 trillion, with a business model that has steadily evolved into a powerful ecosystem play. While the iPhone remains the core revenue driver, Apple's Services segment has become an engine of dependable cash flow. At the same time, Apple has carved out leadership in the wearables and hearables markets through sustained demand for the Apple Watch and AirPods. These products not only contribute to revenue but deepen user engagement across the broader ecosystem. Investor sentiment reflects this growing confidence. Over the past three months, AAPL stock has gained 16%. Meanwhile, in the past five sessions alone, the stock has jumped 4%, easily outpacing the broader S&P 500 Index's ($SPX) 1% rise. AAPL stock trades at 30 times forward earnings and 8 times sales, both well above industry averages, signaling premium expectations. For income-seeking investors, Apple also offers stability through dividends. It pays an annualized forward dividend of $1.01 per share, yielding 0.47%, with its most recent $0.26 per share payout made on May 15 to shareholders of record as of May 12. The company has raised its dividend for 13 consecutive years. On May 1, Apple delivered its second-quarter earnings for fiscal 2025, surpassing Street forecasts. Total revenue reached $95.4 billion, up 5.1% YOY and coming in ahead of consensus estimates of $94.3 billion. The company's Products revenue came in at $68.7 billion, growing 2.7% YOY. The uptick was led by better-than-expected iPhone, iPad, and Mac sales. Importantly, Apple noted that its active installed base of devices hit record levels across all categories and geographies, a direct result of customer satisfaction and long-term brand loyalty. Services revenue climbed 11.6% YOY to $26.6 billion, even after accounting for foreign exchange headwinds. This line item continues to be Apple's most durable growth lever. Meanwhile, gross margin improved to 47.1%, landing in the midpoint of guidance. Net income grew 4% to $24.8 billion, and EPS rose 7.8% to $1.65, ahead of the Street's $1.61 estimate. Operating cash flow remained strong at $24 billion, underlining the company's financial health and cash-generation capacity. Looking ahead, Apple guided for total company revenue in the June quarter to grow in the low- to mid-single-digit range YOY. Gross margin is expected between 45.5% and 46.5%, even after including an estimated $900 million hit from tariff-related costs. Operating expenses are projected between $15.3 billion and $15.5 billion. As for earnings, analysts anticipate fiscal 2025 third-quarter EPS to rise 1.4% YOY to $1.42. For full fiscal 2025, EPS is projected to increase 5.3% to $7.11 and climb another 8.3% to $7.70 in fiscal 2026. Analyst sentiment on AAPL stock remains broadly optimistic, anchored by the company's stability and long-term growth potential. The stock holds an overall rating of 'Moderate Buy,' reflecting a consensus view across Wall Street that balances upside potential with near-term caution. Of the 37 analysts covering AAPL, 18 offer a 'Strong Buy,' three rate it as a 'Moderate Buy,' 14 maintain a 'Hold,' and two assign a 'Strong Sell" rating. While not universally bullish, the majority of analysts lean in favor of continued upside. The average price target of $230.92 represents potential upside of 10%. Meanwhile, the Street-High target of $300 suggests a potential climb of 43% from current levels. On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Insider
05-07-2025
- Business
- Business Insider
Apple (AAPL) Sales Feel the Crunch in China
Sales of foreign-branded mobile phones in China, including U.S. tech giant Apple (AAPL), have dialed down. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Shipments Fall According to new figures from the China Academy of Information and Communications Technology (CAICT), demand for overseas phones dropped 9.7% year-on-year in May. Calculations based on the data showed that May shipments of foreign-branded phones in China fell to 4.54 million handsets from the same month last year. Even though the CAICT doesn't break down its figures by brand, Apple is the largest foreign mobile phone maker in China's smartphone-dominated market. Apple has faced increased competition from domestic rivals and has cut prices to stay competitive. Chinese e-commerce platforms offered discounts of up to 2,530 yuan (351) on Apple's latest iPhone 16 models in May. High Huawei However, on a brighter note for Apple, data from another source – Counterpoint Research – revealed that in the second quarter between April 1 and June 22, iPhone sales increased 8% year-over-year. This was the first time since the second quarter of 2023 that Apple has seen growth in China. But Chinese rival Huawei saw sales climb 12% during the same period. 'Apple's adjustment of iPhone prices in May was well timed and well received, coming a week ahead of the 618 shopping festival,' Ethan Qi, associate director at Counterpoint Research, said in a statement. Ivan Lam, senior analyst at Counterpoint Research, added: 'Huawei is still riding high on the loyalty of its core users as they replace their old phones with new Huawei releases.' Is AAPL a Good Stock to Buy Now? On TipRanks, AAPL has a Moderate Buy consensus based on 15 Buy, 10 Hold and 2 Sell ratings. Its highest price target is $270. AAPL stock's consensus price target is $226.36 implying a 6% upside.
Phone Arena
04-07-2025
- Business
- Phone Arena
Apple's sales in China grew for the first time in two years, but there's another champion
— Ethan Qi, Associate Director, Counterpoint Research, July 2025 Intense competition Receive the latest Apple news By subscribing you agree to our terms and conditions and privacy policy The iPhone 16e was a good move One of the reasons for Apple's growth was the Do you think the iPhone 16 series is good enough to beat Huawei? Yes, iPhones are more practical Yes, because of Apple's brand No, Huawei is more innovative No, iPhones are too expensive Yes, iPhones are more practical 0% Yes, because of Apple's brand 0% No, Huawei is more innovative 100% No, iPhones are too expensive 0% One of the reasons for Apple's growth was the iPhone 16e . The lower-cost model attracted some buyers from the very competitive midrange market and helped Apple expand beyond the premium segment. In the context of China's slowing economy, consumers are increasingly wary of the price of premium devices. That's why the national subsidy programs and aggressive promotions have become crucial for all smartphone companies. On the bright side, Apple's success in the second quarter is a sign of its dominance and ability to navigate the complexities of the premium Chinese market. I think the company's biggest challenge will be keeping up with the competition from local brands. Devices like the Vivo X200 Ultra and the Huawei Mate XT demonstrate an ability to innovate that Apple seems to have lost, which could become a problem. Grab Surfshark VPN now at more than 50% off and with 3 extra months for free! Secure your connection now at a bargain price! We may earn a commission if you make a purchase Check Out The Offer Apple recorded growth in iPhone sales in China in the second quarter of 2025 for the first time in two years, despite the muted overall market growth. Driven mainly by promotions for the iPhone 16 Pro and iPhone 16 Pro Max , the company's high single-digit growth was outperformed by iPhone sales in China jumped 8% year-over-year in Q2 2025, according to a preliminary report by Counterpoint Research. The main boost for Apple's sales were price cuts and government subsidy programs in the iPhone 16 lineup's success, Huawei is the leader in the Chinese market. The company recorded a 12% year-over-year sales increase and is the biggest brand by market share. Vivo takes the second place by market share, but recorded a 9% drop in sales compared to last year, and Apple is left in third success is a reflection of the intense competition Apple is facing. The Chinese giant has been eating away at Apple's market share in China, thanks to the loyalty of its core users who replace their old devices with new Huawei phones.
Yahoo
03-07-2025
- Business
- Yahoo
Apple Edges Higher After Surprise iPhone Growth in China
July 3 - Apple (NASDAQ:AAPL) shares edged up nearly 1% Thursday after sales of iPhones in China grew for the first time in two years, according to a report from Counterpoint Research. In the three months to June 30, iPhone unit sales in China climbed 8% year?on?year, marking the first quarterly growth since Q2 2023. The rebound follows May promotions by Chinese e?commerce platforms that discounted iPhone 16 models and higher trade?in values for older devices. Apple's timing of price adjustments in May ahead of the 618 shopping festival was well received, said Ethan Qi, associate director at Counterpoint. The 618 festival, held each June, sees retailers offer steep discounts. Despite the uptick, Apple still trails local rivals. Huawei's smartphone shipments in China rose 12% in Q2, making it the market leader, followed by Vivo and then Apple in third place. Huawei's resurgence comes after its smartphone business recovered rapidly post?sanctions with advanced homegrown chips. Apple's return to growth in its most critical market comes as it faces U.S. tariff threats and intensifying domestic competition. Investors will be watching whether China's momentum can offset global headwinds in the second half of 2025. This article first appeared on GuruFocus.
Yahoo
03-07-2025
- Business
- Yahoo
Apple iPhone Sales Grow in China for First Time Since 2023 on Promotions
Apple iPhone sales in China grew 8% in the second quarter, according to a report from Counterpoint Research. It was the first such period of growth for Apple in China since the second quarter of 2023. The iPhone maker's bump in sales was driven in part by promotional pricing for the iPhone 16 lineup, Counterpoint said,Apple (AAPL) iPhone sales in China rose 8% year-over-year in the second quarter, the first period of quarterly growth in the country since 2023. The sales bump was driven in part by promotional pricing for the iPhone 16 lineup, particularly the Pro and Pro Max models, according to a report from Counterpoint Research. "Apple's adjustment of iPhone prices in May was well timed and well received, coming a week ahead of the 618 shopping festival," Counterpoint Associate Director Ethan Qi said. The 618 festival is an annual event in China during which brands typically offer discounts. Huawei, the Chinese smartphone giant, saw sales increase 12%, beating out Apple for the largest growth in the period. The company has done an effective job of capitalizing on brand loyalty in China, as consumers replace their old Huawei devices with new ones, Counterpoint said. Shares of Apple rose less than 1% soon after markets opened Thursday. The stock has lost roughly 15% of its value this year amid concerns about the impact of the Trump administration's tariffs given Apple's production footprint in China. The company has shifted production to India, which led President Donald Trump in May to threaten a 25% tariff on all iPhones produced outside the U.S. Read the original article on Investopedia Sign in to access your portfolio
