📈 Apple and its strategy in China 📉
Apple $AAPL+2.8% took the fight to the Chinese market with a price cut of up to a quarter oniPhones, and the response was almost immediate. 📱
Apple
AAPLChina's foreign mobile phone shipments rose by 52 % to 3.489 million units, a marked improvement on March's increase of 12 %. This growth is attributed to Apple's aggressive pricing strategy to attract customers in a slowing economy. 📊
Apple faced a tough start to 2024 in China, losing its top spot in the smartphone market in the first quarter due to a drop in shipments of 19 %. Competition from local brands such asHuawei, whose sales rose by almost 70 %created considerable pressure.
The price cuts that Apple and its partners implemented began to bear fruit in March. Last week Apple announced additional discounts at two key online stores in China.
Analysts at Jefferies described the discounts as "the only option" forApple to defend its market share. The pressure on competitors is expected to force them to further cut prices as well, which could affect margins for all smartphone makers until the third quarter of 2024. 📉
Other important news for shareholders Apple may be the developer conference that is inevitably coming up! Apple (WWDC) begins June 10. Expectations are high, especially for new developments in Artificial Intelligence (AI) and other innovations that could significantly impact the tech giant's future product offerings. 🤖💡
Do you have any expectations of what we can look forward to? Will we see a smart ring from Apple, or finally some AI of our own? What's your opinion on the lowering of iPhone prices in China?
I really like the growth of those sales in China. I have the stock, the company is great and I trust it, but I honestly don't know what to expect from Apple at the moment.