Apple iPhone shipments jump 40% in China: Rpt

Apple's (AAPL) iPhone shipments in China are growing, with a 40% year-over-year increase recorded in May, according to reports. This growth comes as the tech giant intensifies its discounting efforts to capture a larger Chinese market share.

Yahoo Finance's Seana Smith and Brad Smith break down the details, providing insights into other international markets where Apple is looking to grow.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Angel Smith

Video Transcript

Apple's iPhone shipments climbing 40% in China during the month of May from a year ago, according to research firm affiliated with the Chinese government.

The move was slightly off April's growth pace as the tech giant doubles down on discounting.

Here here, you're taking a look at shares right now up by about 2/10 of a percent.

Of course, for Apple.

It's really going to rely on this next wave and this next cycle, perhaps the that's announced not only in this coming September, but the amount of people that rotate into, uh, iPhone 15, something that has the operating system that's essentially going to be able to power some of these new generative A I capabilities that they had touted at WW DC.

And that's where we could potentially see even more of the shipments start to emerge, Uh, a little bit more, not only in China, but I think another major region that's going to be critical for Apple here in that regard might be India as well here, So US India, China, for Apple right now continue to be the most considerable players that they have internationally.

Yes, certainly.

When you take a look at the increase of demand that we are seeing a climb of 40% in May.

It's significant.

Just because of we talk about the fact that Apple has been losing market share against some of the domestic players with inside China.

It's hard to appeal, maybe to a stronger base.

There are more consumers at a time like this, especially amid those heightened geopolitical uh, tensions here that we have seen between China and the US government over the last several months.

So again, obviously, when you take a look at the climb and a climb as significant as this is early data showing of 40% it's also important to point out that this is a at a time when smartphone shipments climbing climbed only 13% overall.

But foreign brands there are growing almost four times faster, so really outpacing some of the growth that we saw from those domestic brands.

But again, China, a key country obviously a key region for apple, we talk about the importance to it for future growth here, time and time again.

So again, getting even more traction inside the country clearly viewed and should be viewed as a win here for Apple.

I mean, it took us all the way until May for Apple to join the rally here that we've seen over the course of 2024 here, where there have been new all time highs notched Apple for, uh, five months, essentially or almost five months was left out of that.

It's really in recent weeks, in the month of May and June that this company has decided to join in on some of the action here and during that time since the beginning of May, essentially has been able to run up by about 24% here.

And so all things considered, it's real coming on the back of what they were able to announce about when they would actually join into this broader theme and the thematic play for a lot of people of a I, but also where they would be able to show that they can navigate a consumer environment that is pushing back against some of the higher consumer technology prices.

Even if you don't have to replenish, this is demand generation, this is them triggering that next replenishment rate cycle