Here's Why Apple Could Shine Amid China's Covid Resurgence

China's recent surge in Covid cases jeopardizes the leading smartphone market, while Apple Inc AAPL could still shine, analysts told CNBC.
China reported over 20,000 Covid infections leading to a countrywide lockdown hindering logistics and consumer spending.
China tried to keep the factories running to reduce disruption.
Also Read: Apple iPhones Led Smartphone Sales As 5G Handsets Formed Over 50% Of Sales
Analysts see up to a 20% year-on-year decline in smartphone shipments in Q2.
The weaker momentum of the Android market was a key reason behind the decline. Multiple brands (like Xiaomi) fought fiercely on price for a piece of a shrinking Android pie.
Analysts think Apple could see a decline of 4% - 5% in shipments in Q2 partly due to seasonality as Apple released its newest products toward the end of last year.
Apple could see some growth in Q2 as it continues to capitalize on the decline of Huawei in the premium end of the market.
Analysts saw Apple grow its overall market share in China in 2022 as its loyal and affluent fans upgraded to new or budget-friendly 5G models.
China's discount shopping event in June could also see a recovery in smartphone shipments.
However, the continued Covid surge could lead to a market drop as low as 12% year-on-year.
Price Action: AAPL shares traded lower by 0.44% at $171.07 premarket on the last check Thursday.