iPhone 17 Momentum Fuels Apple’s China Comeback In October; Analyst Says Huawei Threat Won’t Trigger Sharp Drop-Off

• Apple’s iPhone sales in China climbed 37% year over year (YoY) in October.
• The new Huawei flagship model, scheduled to be launched next week, could temper Apple’s strength.
• But a market research analyst predicted no significant impact.

Apple Inc.’s (AAPL) China woes may be a thing of the past, as the tech giant has reportedly outperformed the market in terms of sales of its latest iPhone iteration.

Apple stock has lagged behind most of its mega-cap rivals this year, with the softness partly attributable to the China risk amid the ongoing standoff between the U.S. and China, as well as the imposition of tariffs and counter-tariff measures.

Apple’s Positive China Tidings

The Tim Cook-led company’s China iPhone sales climbed 37% year over year (YoY) in October, thanks to a strong showing by the iPhone 17 Series, Bloomberg reported, citing data from Counterpoint Research. iPhones accounted for one of every three smartphones sold in China during the month — a threshold the company hasn’t reached since 2022. New iPhone models accounted for over 80% of the total iPhones sold in China in October.

Each of the iPhone 17 variants outperformed their respective models from the previous iteration (iPhone 16) by double-digit percentage. More importantly, Apple’s resurgence in China helped lift sagging smartphone industry sales in the country to 8% growth.

Counterpoint analyst Ivan Lam said, “We’re likely to see growth amplified as rising ASPs push the top-line higher.”

Among other vendors, Oppo clocked 19% YoY sales growth in October. On the other hand, Apple’s chief rival in China, Huawei, experienced a YoY sales decline as it did not release any new models. The equation could change in the coming weeks, as Huawei is set to release a new flagship smartphone model next week.

For now, Lam said iPhone demand trends remain steady. While stating that the Huawei Mate 80 Series launch on Nov. 25 could pose a risk to Apple, Lam said, “But there’s a lot of momentum behind Apple and at this point not much tapering to indicate a steep dropoff.”

Why China Is Key For Apple

Apple derived roughly 14% of its September quarter sales from Greater China, comprising mainland China, Hong Kong, Taiwan and Taipei. China, which used to clock the fastest growth among geographies, was the lone region witnessing YoY sales decline during the quarter.

China is important for Apple, both as a supply chain and an end market.

Apple issued a strong revenue growth forecast for the December quarter when it announced its September quarter results last month, underpinned by a return of growth in China due to strong uptake of iPhone 17 models and continued strength in the Services business.

What Retail Feels About AAPL Stock

On Stocktwits, retail sentiment toward Apple stock remained ‘bearish’ as of early Tuesday, and the message volume was ‘low.’

The stock has gained merely 7.3% this year, and the average analysts’ price target for the stock, provided by Koyfin, signals mid-single-digit percentage gains.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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