Apple Stock Rises Premarket: iPhone 17 Emerges As Brightest Spot In China January Sales

Apple stock is seeing a boost from the launch of the latest iteration of its flagship product, which has been well received by consumers in China who, in recent years, have migrated to other China-based mobile manufacturers.

• Counterpoint Research said Xiaomi and Vivo, among others, saw major declines in a market that was down 23% overall.
• iPhone sales were the only bright spot in China, with Apple seeing a 8% growth in January, according to Counterpoint Research.
• Last year, after the release of the iPhone 17, Counterpoint Research reported that Apple’s iPhone sales in China increased 22% year over year in the first month after launch.

Apple’s iPhone sales have continued their momentum in the world’s second-largest economy as new upgrades to the product through the iPhone 17 launch last year have attracted customers in China, a key market for the consumer tech giant.  

iPhone sales had taken a beating for a long time as cheaper, subsidized, China-based phones from makers such as Huawei and Xiaomi became consumer favourites, but the recent launch and introduction of new features helped iPhone sales outpace those of these companies.

According to a Bloomberg News report, citing Counterpoint Research, iPhone sales were the only bright spot, with Apple seeing a 8% growth in January. This also helped the company increase its market share to roughly a fifth, tying Huawei for the lead.

Apple’s stock rose marginally in premarket trading on Thursday, heading for its second straight day of gains. The stock has risen 1.4% so far this year and is on track for its fourth consecutive session of annual gains.

How Did Other Phones Do In China?

Counterpoint Research said Xiaomi and Vivo, among others, saw major declines in a market that was down 23% overall, largely due to reduced subsidies and a shift in the timing of the Lunar New Year, the report noted.

According to the data, Xiaomi’s China sales fell 36%, Vivo declined 29%, and Huawei fell 27%. On the other hand, Oppo declined 19%, and Honor declined 26%. Bloomberg, citing researchers at Counterpoint, said that Apple’s market share reached the highest January level in the past five years and that the iPhone 17 base version now qualifies for government subsidies.

iPhone’s Comeback In China

Last year, after the release of the iPhone 17, Counterpoint Research reported that Apple’s iPhone sales in China increased 22% year over year in the first month after launch, even as the broader market showed signs of softening.

In December, an IDC report found a surge in demand for Apple’s flagship product, driven by consumer enthusiasm for the newly released iPhone 17 series, which triggered a dramatic rebound in the company’s performance. 

According to the research firm’s analysis, iPhone shipments were initially forecast to decline by 1%, but are now expected to rise by nearly 3%. 

What Is Retail Thinking?

Retail sentiment on Apple dipped to ‘bearish’ from ‘extremely bullish’ a week ago, with message volumes at ‘low’ levels, according to data from Stocktwits.

In the last 24 hours, retail message volumes on the stock jumped more than 114% on Stocktwits, and the ticker has 978,300 followers on the platform.

Shares of Apple have gained 14% in the last 12 months.

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