Why iPhone 14 Demand Is Surging In China — Apple Analyst Has Possible Explanation

Apple, Inc.'s AAPL next iPhone iteration, the iPhone 14, is scheduled to be released in fall 2022, and the demand for it is already surging higher in China, noted Apple analyst Ming-Chi Kuo said.

Quoting a late-June tweet, in which he initially flagged strong iPhone 14 demand, Kuo said the trend continues. Potential demand for the iPhone 14 series in China is continuing to increase, the analyst said, citing his checks with distributors, retailers, and scalpers.

The TFI International Securities analyst noted that the strong data point could be due to Apple dominating the "entire" Chinese high-end smartphone market after Huawei exited the 5G smartphone market. Additionally, high-end iPhone users have increased in the Chinese market, he added.

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Price Action: Apple closed Thursday's session up 2.05% at $148.47, according to Benzinga Pro data.

Benzinga's Take: Kuo's positive commentary on iPhone 14 demand does not corroborate the weakening economic fundamentals in China. Earlier Friday, China's National Bureau of Statistics reported that the domestic economy grew at the slowest pace since the first quarter of 2020 when the COVID-19 pandemic first struck in Wuhan and subsequently spread to the other regions in the country.

The second-quarter GDP slowdown reflected the impact of the COVID-19 resurgence in China that brought businesses to a standstill.

Kuo's comments seem to be based on expectations of pent-up demand positively impacting sales.