Apple’s China iPhone 17 Sales Outperform Industry: Stock Slips Premarket Amid Souring Tech Sentiment

Apple’s slow AI adoption has insulated the company from the recent AI-led sell-off, according to market watchers.

• Apple’s iPhone sales in China climbed 22% YoY in the first month after it was launched.
• In comparison, the iPhone 16 series experienced a 5% drop in sales in the first month following its launch in 2024.
• Overall, smartphone sales in China declined by 2.7% in the third quarter.

Apple, Inc. (AAPL) stock rose marginally in Friday’s early premarket session, even as the  Invesco QQQ Trust (QQQ) ETF, which tracks the Nasdaq 100 Index — an index comprising the 100 biggest non-financial tech stocks, fell about 0.40%.

 After underperforming the tech sector for much of the year, Apple’s stock has turned the corner as artificial intelligence (AI) bubble fears ravaged most of its big tech rivals, which have heavy exposure to the technology.

Apple’s China Strength Returning?

The latest iteration of Apple’s flagship product, the iPhone, saw brisk sales in China, according to market research firm Counterpoint, Reuters reported. Following the iPhone 17 series launch in mid-September 19 through October, it accounted for nearly four-fifths of the company’s smartphone sales in China.

Apple’s China iPhone sales increased 22% year over year (YoY) in the first month after its launch, even as the broader market showed signs of softening. In comparison, the iPhone 16 series saw a 5% YoY drop in the first month following its launch in 2024.

Overall, smartphone sales fell 2.7% YoY in China in the third quarter, the report said. 

The solid performance in China should bode well for Apple, which counts the country as one of its key end markets and also a key supply chain. 

Apple’s AI Lag  A ‘Blessing In Disguise’

Market watchers attribute the relative resilience of Apple’s stock amid the AI-induced sell-off to the company’s slow adoption of the technology. Once considered a pushback, it has now offered insulation from the market fears. The company’s most advanced AI adoption is expected to materialize when it launches its upgraded Siri personal assistant next year.

What Retail Feels About Apple’s Stock

On Stocktwits, retail investors, however, remained ‘bearish’ toward the Apple stock. The message volume on the stream also remained ‘low.’

Notwithstanding the recent resilience, retail traders fear that the stock will become a victim to rotation out of techs.

Another watcher said Apple’s stock would be the last to fall, touching even the  $220 levels.

Apple’s stock has gained about 9.5% so far this year.

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