iPhones sales in China grew 3% year-over-year over the May Day holiday
by Horace Dediu
3% growth in a 16% declining market
China’s smartphone sales declined 16% year-over-year (YoY) around the May Day holiday, mainly due to higher memory-driven prices dampening upgrade demand, according to new data from Counterpoint Research.
However, Apple grew 3% YoY during the May Day period, although it experienced a typical sequential slowdown as the iPhone 17 lineup entered a more normalized demand phase amid intensified competition, notes the research group.
Counterpoint says Apple is going through seasonality with competitors offering launches in April. The iPhone 17 lineup entering a more normalized demand phase following a robust six-month run.
Source: MacTech.com
NB: May Day holiday is a substantial 5 day sales event. The iPhone was up against a set of new product launches but still managed to grow while the market declined. It's a remarkable story. Apple guided to similar growth for the June quarter as for the March quarter. Signals are coming in that this is not a fluke.
2 comments
Sacto Joe ·
“Apple guided to similar growth for the June quarter as for the March quarter. Signals are coming in that this is not a fluke.”
As demand increases, production capacity becomes the limit on growth. In Apple’s case, it’s production capacity for highly sophisticated high quality devices.
That will take time, across the board.
Then there are the “new” places Apple is directing it’s growing free cash flow, whatever those turn out to be.
Bottom line: I’m expecting a general increase in EPS on the order of 15-25% going forward, which should create a corresponding increase in valuation to match. Assuming growth averages 20%, that will equal a double in valuation every 4 years.
Sacto Joe ·
Sorry - that’s “general ANNUAL increase in EPS”….