On March 26th, Wedbush Securities, a US-based brokerage firm, stated on Monday that amid declining iPhone sales and intense competition in the Chinese market, Apple might double down on its investments in the Chinese smartphone market.
Wedbush believes that Apple faces a challenging operating environment in its largest overseas market, China, as it contends with fierce competition from domestic smartphone manufacturers, particularly Huawei, which is experiencing a resurgence in its consumer business in China following the launch of the Mate 60.
The firm indicates that Apple needs to overcome challenges in China before the release of the iPhone 16, including a daunting macro environment and competition from Huawei. "It all starts with reaffirming Apple's presence in China."
Wedbush suggests that Tim Cook's recent visit to China signals a potential doubling down by Apple in the Chinese market. "The timing of this visit is crucial as fundamentally Apple needs China, and China needs Apple."
Despite Apple diversifying partial iPhone production to countries like India and Vietnam, Wedbush states, "The vast majority of iPhone production and suppliers will still remain in China."
