Even before the release of the iPhone 16, research from JP Morgan indicates a rise in iPhone sales in China, driven by a recovering smartphone market.
Recently, JP Morgan had advised investors about Apple’s challenges in China but projected a recovery. Following the announcements at the 2024 Worldwide Developers Conference (WWDC), JP Morgan increased its Apple stock price target to $245, expecting a strong upgrade cycle for the iPhone 16 due to the upcoming Apple Intelligence features.
JP Morgan’s latest data for May 2024 shows a notable improvement in iPhone sales. According to figures from the China Academy of Information and Communications Technology (CAICT), iPhone sales increased by 44% compared to April 2024 and 40% compared to May 2023.
Although these numbers are promising, they are still below Apple’s historical performance, which typically sees a 55% growth at this time of year.
Overall, smartphone vendors in China saw increases, with CAICT reporting a 26% rise in total smartphone shipments in May 2024 compared to the previous month and a 16% rise compared to the previous year.
Despite the positive trend, Apple’s year-over-year sales for May were down 8%.
However, this is an improvement from January 2024, when sales were down 38% year-over-year. Year-to-date, Apple’s sales have increased by 17%, still below the 20% market share previously seen in China.
Counterpoint’s research indicates that the iPhone 15 peaked higher than its predecessor, suggesting a trend towards recovery.
Analysts expect the iPhone 16, with its advanced Apple Intelligence features, to further boost sales.
