Apple (AAPL) is back on top in China. In May, the tech giant’s iPhone became the best-selling smartphone in the country, based on new data from Counterpoint Research. This marks Apple’s most successful two-month period since the onset of COVID-19.
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Meanwhile, during April and May, global iPhone sales rose 15% compared to the same period last year. Most of that growth came from Apple’s two biggest markets—China and the United States. The company also saw solid gains in Japan, India, and the Middle East.
Discounts Drive Demand
One major reason for Apple’s strong showing in China was a series of price cuts offered last month. Facing tough competition from local brands like Huawei, Apple slashed prices on its latest iPhone 16 models by as much as 2,530 yuan (around $351). These discounts helped bring more buyers back to the brand.
But this may only be a short-term move. While the lower prices gave Apple a boost, the company still needs a stronger long-term plan to hold its ground in China’s fast-moving smartphone market.
Also, data from the China Academy of Information and Communications Technology (CAICT) reflects Apple’s strong position in China. In April, shipments of foreign-branded phones in China rose slightly from 3.50 million to 3.52 million units year-over-year. While the increase is small, it shows that Apple is still holding on in a market where competition is fierce.
Q2 Outlook Looks Positive
According to Counterpoint analyst Ivan Lam, iPhone sales for the second quarter “look promising.” However, he added that much depends on steady demand in both China and the U.S., two key markets that could swing the final outcome. Despite growing competition, Apple’s strong brand and smart pricing may help keep it ahead, at least for now.
Is AAPL Stock a Buy?
On TipRanks, AAPL has a Moderate Buy consensus based on 16 Buy, nine Hold, and four Sell ratings assigned in the past three months, as indicated by the graphic below. The average AAPL price target of $226.94 per share implies 13.93% upside potential.
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