"Mad Money" host Jim Cramer had a strong reaction after new data revealed Apple Inc. AAPL had a dismal start to 2024, facing a 19.1% drop in iPhone sales in China.
What Happened: Apple's iPhone sales in China nosedived 19.1% in the first three months of 2024, with its market share witnessing a significant decline to 15.7% from 19.7% a year ago, according to data from Counterpoint Research.
This is Apple's worst performance since 2020, largely due to the impact of Huawei Technologies Co.’s new product launches in the premium segment.
Huawei’s sales surged by 70% in the same period.
Cramer reacted to the news, saying, "Another day another ‘dump on Apple iPhone' day. This time it is a China survey that shows sales dropped 20%."
He thinks Apple's stock "could see $160."
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Apple has lost its position as the leading smartphone seller in China to Vivo, slipping to third place in the quarter, behind Honor. Huawei is a close fourth, with a 15.5% market share, compared to Apple's 15.7% share.
"Apple's sales were subdued during the quarter as Huawei's comeback has directly impacted Apple in the premium segment," said Counterpoint's senior research analyst, Ivan Lam, adding that another factor that contributed to softer iPhone sales was subdued replacement demand.
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Apple’s market share loss in China follows a nearly 10% drop in global smartphone shipments in the first quarter of 2024, as reported earlier this month.
Why It Matters: The recent decline in Apple’s China sales is not an isolated event. The company’s iPhone sales in China fell by 33% year-on-year in February, prompting concerns from industry experts like Cramer about the stock’s performance.
Despite these challenges, analysts like Ananda Baruah of Loop Capital believe that Apple’s fortunes could soon turn around, especially with steady iPhone production in other key markets.
Wedbush's Dan Ives believes the "seeds" for Apple's turnaround in China are "being planted" while Deepwater Asset Management's Gene Munster believes Tim Cook's recent China visit is a message to Xi Jinping that Cupertino is "committed to China."
Price Action: Apple's shares were trading 0.13% in the green in premarket trading on Tuesday after closing at $165.84 on Monday, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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