The Strategist

Apple hits record high thanks to China

01/10/2020 - 08:45

According to CNBC estimates, which used government data published by the Chinese Academy of Information and Communication Technology, sales of Apple products in China last December grew by more than 18%.

The data shows that in December 2019, Apple delivered 3.2 million devices to China. A year earlier, in the last month of 2018, the volume of deliveries was 2.7 million. China is a key region for Apple, struggling with numerous competitors producing cheaper smartphones.

Apple shares rose on Thursday by more than 2%, reaching a new record high of $ 309.63 at the close of trading.

In the first quarter of 2019, Apple reported declining revenue from China - $ 13.17 billion, which is $ 5 billion less than in the same period in 2018.

"It is clear that the economy in this country has begun to slow down, and I believe that trade tensions between the United States and China are putting additional pressure," explained Apple CEO Tim Cook at the beginning of last year. Since then the situation has clearly improved.

According to the November data of Counterpoint Research, in Q3 2019, Apple's share in China was only 8% compared to 9% for the same period in 2018. The market leader with 40% share is Huawei, followed by Vivo, Oppo, Xiaomi

Analysts, pointing to the latest sales data, note that skeptics underestimate China, in which the uptrend in sales will continue. In turn, it will certainly lead the American giant to new records. So, Wedbush believes that the country will prompt Apple shares growth to $ 350 apiece in the 12-month run.