Bloomberg reported Friday that the technology giant Apple (NASDAQ:AAPL) may be inspired by Chinese phone makers Huawei and Xiaomi’s step into the electric vehicle market.
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Indeed, Huawei’s move into the Chinese EV market has seen considerable success. The company said it received over 80,000 orders following the launch of its vehicle. Meanwhile, Xiaomi said it plans to launch its EV next year after receiving road-worthiness approval from Chinese regulators.
According to the report, the two companies’ biggest advantage is their expansive tech ecosystem. Compared to electric vehicle makers Tesla (NASDAQ:TSLA) and BYD, who run one line of business, Huawei and Xiaomi have an extensive ecosystem of tech devices – most of which are connected.
Should Huawei and Xiaomi see considerable success, the report said it could motivate Apple to launch its own EV.
Meanwhile, Wedbush analyst Dan Ives, in a research note, stated that iPhone demand in China is “very consistent.” This follows earlier data from KeyBanc, which showed that some of the models within the iPhone 15 models have seen a demand slump.
Ives told investors that while the U.S. remains a strong market for iPhones, the tech behemoth would still benefit from the healthy iPhone demand in China.
Is Apple a Buy, Sell, or Hold?
On TipRanks, AAPL stock commands a Strong Buy consensus rating based on 25 Buys and eight Holds. After a 52.67% rally in its share price this year, the average AAPL price target of $201.99 per share implies 6.38% upside potential.
