Shares in U.S. tech giant Apple (AAPL) were higher today despite delaying the launch of its new iPhone Air model in mainland China.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The company cited regulatory approval issues for the delay.
Orders Schedule
When pre-orders for the new models began today, the company’s China website would not let customers in the region order the new, thinner device. Instead, a message read: “Release information will be updated later. All models will be released after approval.”
Apple had said that the new product would become available in the region on September 12 for pre-order and on September 19 for general availability, matching the U.S. and other major markets.
Apple did not comment.
However, according to a report from Reuters, a Chinese launch is far more complex for the iPhone Air than it is elsewhere. Unlike the U.S., China is mostly reliant on physical SIM cards and hasn’t widely adopted eSIM technology, which the iPhone Air uses because of its thinner frame.
When the iPhone Air was announced, Apple said that the device would initially only be available through a single Chinese carrier — China Unicom — and would require users to visit a physical carrier store to activate their eSIM and start using the device.
Competitive China
Apple has faced intense competition from domestic rivals in China in recent months. Chinese tech firm Huawei regained the lead in China’s smartphone market during the second quarter of the year, according to data from Canalys. The company shipped 12.2 million smartphones, which was up 15% from a year earlier and equated to an 18% market share.
Apple saw its shipments rise by 4% to 10.1 million units for a fifth-place finish. This was good news because it was Apple’s first time seeing growth in China since the fourth quarter of 2023.
Apple has struggled in China because of fears that its technology is more outdated than domestic rivals, regulatory issues facing foreign firms, weak consumer spending and perhaps Chinese people wanting to support its own firms.
China remains crucial for Apple, given it contributes around a fifth of overall revenues – see below:
Also encouragingly for Apple it stated that in the U.S., home deliveries for some iPhone 17 Pro Max models slipped to a window of October 6 to October 13, potentially indicating strong initial demand for the device.
Is AAPL a Good Stock to Buy Now?
On TipRanks, AAPL has a Moderate Buy consensus based on 14 Buy, 15 Hold and 2 Sell ratings. Its highest price target is $290. AAPL stock’s consensus price target is $240.63, implying a 2.89% upside.
See more AAPL analyst ratings