Apple stock rose Friday after a report from research firm Counterpoint indicated strong initial sales of iPhone 16 handsets in China, the world's largest smartphone market.
Counterpoint said iPhone 16 sales in China were up 20% in the first three weeks of availability compared with 2023's models. The iPhone 16 series smartphones went on sale Sept. 20 worldwide.
Apple has faced heightened competition from domestic smartphone companies in China, such as Huawei and Xiaomi.
Counterpoint said Apple's high-end Pro and Pro Max models of the iPhone 16 are doing particularly well in China. Their combined sales are up 44% compared with their equivalent 2023 versions.
"This industry analysis is consistent with our recent Asia trip and supply chain checks," Wedbush Securities analyst Daniel Ives said in a client note. "We believe China sales for iPhone 16 will show a strong rebound over the next year with the beginning of this AI-driven super cycle."
He added, "We believe there are 100 million Chinese iPhones in the window of an upgrade opportunity alone for 2025."
Apple Stock Clears Buy Point
Ives rates Apple stock as outperform with a 12-month price target of 300.
On the stock market today, Apple stock advanced 1.2% to close at 235. With the move, Apple cleared an earlier handle buy point of 233.09, according to IBD analysis.
Further, Apple stock is approaching another buy point of 237.23 out of a 13-week consolidation pattern, according to IBD MarketSurge charts.
The next potential catalyst for Apple stock could be the release of the first set of Apple Intelligence features, reportedly due out Oct. 28.
Ives says he believes that Apple will partner with China internet firm Baidu to provide AI services in China.
Apple stock is on the IBD Tech Leaders list.
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