Apple’s newest iPhone 15 lineup is apparently not selling that well in China, according to new analyst research revealed via Bloomberg.
The report indicates a decline in sales of iPhone 15 in its first 17 days of availability, compared to the same period for the iPhone 14 last year. The analysts estimate a 4.5% drop, which — at Apple’s scale — equates to millions fewer devices sold. Apple stock is down 1% in premarket trading on the news.
The downturn in sales performance is attributed to an ongoing weakness in consumer demand and strong competition from domestic rivals like Huawei. Research analysts at Jefferies indicate Huawei has beaten Apple to now become the best-selling smartphone manufacturer in the region, and believe that the trend will continue through 2024.
In recent weeks, China has embraced Huawei’s impressive launch of the Mate 60 Pro phone, in spite of US sanctions placed on the company. The state has also banned government officials from using iPhones in the workplace, citing security risks. Some would argue the Apple brand has been culturally tarnished as a result.
However, it’s not all bad news for Apple. Weakness in the China region could be offset by seemingly strong domestic sales in the United States.
Apple will report its quarterly earnings results on November 2nd, including sales for the period July – September, which includes the first week of iPhone 15 sales.
Investors will be anxious to see how reported revenue from the iPhone business unit compares to the previous year, and consensus expectations. Reception to the new iPhone is also a key factor for sales in the (current) holiday period; Apple will report holiday quarter results in January.
Overall, though, it hasn’t been a great calendar year for Apple’s bottom-line earnings. The company has posted overall year-over-year revenue declines for the last three quarters. We’ll have to see whether the iPhone 15 launch can reverse that trend.
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