We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Apple's (AAPL) iPhone 15 Hit in South Korea, Lags in China
Read MoreHide Full Article
Apple’s (AAPL - Free Report) latest iPhone is a hit in South Korea, per a recent article from The Korea Herald, cited by the 9TO5Mac. However, iPhone 15 sales have been sluggish in neighboring countries, China and Japan, both major markets for Apple.
Apple launched the iPhone 15 in South Korea on Oct 13, much later than its launch in the United States on Sep 22. In the first month of launch, iPhone 15 sales jumped 41.9% compared with the iPhone 14 series launch a year ago, per market research firm Atlas Research and Consulting, cited by The Korea Herald.
Sales of the smaller and cheaper iPhone 15 doubled over the same period, while the higher-priced iPhone 15 Pro Max witnessed 42.3% growth. Moreover, the iPhone 15 accounted for 30.7% of the sales, lagging the iPhone 15 Pro, which accounted for roughly 50%.
iPhone 15 sales in South Korea benefited from incentives offered by the telecom carriers, as well as the availability of Apple Pay. SK Telecom’s launch of the recording service for iPhones through its AI app has been a catalyst.
However, iPhone 15 sales have been lukewarm in both Japan and China.
Japanese customers seem to prefer older iPhones, particularly iPhone 12 mini and 13 mini phones, according to Nikkei Asia. Apple discontinued sales of the iPhone 13 mini on its official site prior to the launch of the iPhone 15.
Moreover, according to Counterpoint Research, iPhone 15 sales were disappointing in China. Sales of the iPhone 15 were down 4.5% compared with the iPhone launch during the first 17 days after their release. Stiff competition from Huawei with the launch of the Mate 60 series hurt iPhone sales.
According to Counterpoint Research data, cited by CNBC, Huawei’s sales in China grew 37% year over year in the third quarter. Huawei commanded a 12.9% market share in the quarter, up from 9.1% in the year-ago period. Apple, along with Vivo and Oppo, witnessed double-digit declines in China.
Apple Prospects Remain Bright
Apple’s business runs around its flagship iPhone. In fourth-quarter fiscal 2023, iPhone sales increased 2.8% year over year to $43.805 billion and accounted for 48.9% of total sales.
iPhone sales beat management's expectations and achieved record sales in India, China, Latin America, the Middle East and South Asia. Apple expects iPhone revenues to grow year over year in the first quarter of fiscal 2024.
Moreover, Apple is benefiting from increasing customer engagement in the services segment. It currently has more than one billion paid subscribers across its Services portfolio. The expanding content portfolio of Apple TV+ and Apple Arcade is helping drive subscriber growth.
Zacks Rank & Stocks to Consider
Apple currently has a Zacks Rank #3 (Hold).
Apple shares have returned 46.7% year to date, outperforming the Zacks Computer & Technology sector’s return of 45.5%.
Image: Bigstock
Apple's (AAPL) iPhone 15 Hit in South Korea, Lags in China
Apple’s (AAPL - Free Report) latest iPhone is a hit in South Korea, per a recent article from The Korea Herald, cited by the 9TO5Mac. However, iPhone 15 sales have been sluggish in neighboring countries, China and Japan, both major markets for Apple.
Apple launched the iPhone 15 in South Korea on Oct 13, much later than its launch in the United States on Sep 22. In the first month of launch, iPhone 15 sales jumped 41.9% compared with the iPhone 14 series launch a year ago, per market research firm Atlas Research and Consulting, cited by The Korea Herald.
Sales of the smaller and cheaper iPhone 15 doubled over the same period, while the higher-priced iPhone 15 Pro Max witnessed 42.3% growth. Moreover, the iPhone 15 accounted for 30.7% of the sales, lagging the iPhone 15 Pro, which accounted for roughly 50%.
iPhone 15 sales in South Korea benefited from incentives offered by the telecom carriers, as well as the availability of Apple Pay. SK Telecom’s launch of the recording service for iPhones through its AI app has been a catalyst.
However, iPhone 15 sales have been lukewarm in both Japan and China.
Apple Inc. Price and Consensus
Apple Inc. price-consensus-chart | Apple Inc. Quote
Japanese customers seem to prefer older iPhones, particularly iPhone 12 mini and 13 mini phones, according to Nikkei Asia. Apple discontinued sales of the iPhone 13 mini on its official site prior to the launch of the iPhone 15.
Moreover, according to Counterpoint Research, iPhone 15 sales were disappointing in China. Sales of the iPhone 15 were down 4.5% compared with the iPhone launch during the first 17 days after their release. Stiff competition from Huawei with the launch of the Mate 60 series hurt iPhone sales.
According to Counterpoint Research data, cited by CNBC, Huawei’s sales in China grew 37% year over year in the third quarter. Huawei commanded a 12.9% market share in the quarter, up from 9.1% in the year-ago period. Apple, along with Vivo and Oppo, witnessed double-digit declines in China.
Apple Prospects Remain Bright
Apple’s business runs around its flagship iPhone. In fourth-quarter fiscal 2023, iPhone sales increased 2.8% year over year to $43.805 billion and accounted for 48.9% of total sales.
iPhone sales beat management's expectations and achieved record sales in India, China, Latin America, the Middle East and South Asia. Apple expects iPhone revenues to grow year over year in the first quarter of fiscal 2024.
Moreover, Apple is benefiting from increasing customer engagement in the services segment. It currently has more than one billion paid subscribers across its Services portfolio. The expanding content portfolio of Apple TV+ and Apple Arcade is helping drive subscriber growth.
Zacks Rank & Stocks to Consider
Apple currently has a Zacks Rank #3 (Hold).
Apple shares have returned 46.7% year to date, outperforming the Zacks Computer & Technology sector’s return of 45.5%.
NVIDIA (NVDA - Free Report) , NetEase (NTES - Free Report) and Intel (INTC - Free Report) are some better-ranked stocks that investors can consider in the broader sector, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
NVDA, NTES and INTC shares have returned 238.4%, 60.4% and 64.9%, respectively, on a year-to-date basis.
Long-term earnings growth rates for NVIDIA, NetEase and Intel are pegged at 13.5%,15.98 and 14.18%, respectively.