China’s unexpected love affair with the iPhone 11 could send Apple stock to new highs, lingering trade war concerns or not. | Source: Justin Sullivan/Getty Images/AFP
Analysts have expressed concerns towards declining sales of Apple products since early 2019, particularly after AAPL’s $44 billion sell-off last month. Its flagship iPhone 11, however, is selling unexpectedly well in China, which may be the catalyst Apple stock needed.
Pinched by the U.S.-China Trade War, as well as shifting tastes among Chinese consumers towards more affordable devices offered by local brands like Huawei and Xiaomi, Apple has had a difficult year targeting one of its main markets in China.
In January, former Apple retail executive Carl Smit indicated that it would require a radical change for Apple to be competitive in the Chinese market once again, noting that the company wasn’t adapting well to the evolving climate.
“They’re not adapting quick enough. These apps and systems are how people communicate in China, and if you don’t have seamless integration, the Chinese manufacturers have an edge,” he said at the time.
However, based on the reception of the iPhone 11 in the past two days, Apple may have found a solution to boost its performance in the Chinese market: offering the device at a price point that appeals to local consumers.
Apple stock could see solid recovery if performance can be sustained
According to Ming-Chi Kuo, an analyst at TF International Securities, pre-orders coming from China for the iPhone 11 are beating expectations,