Apple could double down on China market, Wedbush says, as iPhone sales drop

Apple could double down on the China smartphone market amid declining iPhone sales and stiff competition in the country, Wedbush Securities said on Monday.

Challenges

Apple needs to overcome its China challenges including a tough macro environment and competition from Huawei before the iPhone 16 release and “it all starts with reaffirming Apple’s presence in China,” Wedbush said.

Shared Development

China’s Minister of Commerce Wang Wentao met Apple CEO Tim Cook on Friday and said his country holds opportunities for Apple as well as other companies, and asked the iPhone maker to keep building its business in China for “shared development,” according to a press statement.

A Crucial Supply Chain Partner

Cook said China was a crucial supply chain partner for Apple and the company plans to increase investment in the country in the long term, the statement said.

Last week, Cook opened Apple’s newest flagship store in Shanghai on Thursday and met with key suppliers in China, according to media reports. He also attended the China Development Forum in Beijing, as China seeks to woo foreign investors amid regulatory and global uncertainties.

Cook’s latest trip to China, which Wedbush said is “a sign Apple could double down” on China, comes amid reports of iPhone sales in China plunging 24% in the first six weeks of 2024.

About E. J. McKay

E.J.McKay is a Shanghai-headquartered investment bank with a special focus on mergers & acquisitions. We are one of the most long standing independent investment banks in China, with core business of mergers & acquisitions and financing advisory.