Apple has managed to turn around its iPhone sales in China, at least for the month of December. The company managed to report record growth for last year's holiday season, shipping millions of units according to official data.
Estimates based on government data that tracked smartphone shipments revealed that Apple managed to ship roughly 3.2 million units in China for the month of December. This represented an 18.7 percent growth when compared to the same month in 2018.
Analysts have stated that the sudden increase in shipments may be attributed to the release of the company's latest flagship model, the iPhone 11, in September. Further data published by the government think tank China Academy of Information and Communication Technology (CAICT) corroborates the estimates.
A note published on Thursday by investment analysts at Oddo stated that global financial markets have taken reports of increased iPhone sales in China for the month of December positively. Shares of Apple's major suppliers, including companies such as STMicroelectronics, Infineon Technologies, AMS, and Dialog Semiconductor have all surged over the past few weeks. The rise in the companies' stocks was also partly buoyed by the overall tech sector rally earlier in the month.
Critics have mainly seen the increased iPhone sales in China as a direct result of the overwhelmingly positive reception of the iPhone 11. The new flagship model featured massive improvements over its predecessor such as improved battery life. The iPhone 11 and the iPhone 11 Pro were also being sold at slightly lowered prices.
Shipment data and analysts' estimates also revealed that the iPhone 11 is selling more strongly than its predecessor. This is particularly true in China, which is Apple's second-largest market based on its contributions to its bottom line.
The increase in sales in December has managed to boost optimism over the company's prospects in the coming Lunar New year, which will be happening later this month. Some analysts have predicted that the company could see further growth in iPhone sales in China for the month of January.
However, Apple will likely still have an uphill battle ahead of it in 2020 as it faces domestic and international Android smartphone vendors in China. Despite facing sanctions and obstacles abroad, Chinese smartphone maker Huawei Technologies still retains a bulk of the market in China. Apple has also yet to release a 5G-enabled device, a feat that most of its competitors have already completed. This task is particularly vital for the company as China accelerates its adoption of 5G network technologies.
