iPhone Sales Rebound In China, But Apple's Next Move Could Be Risky

Group 1 - Apple Inc's iPhone sales in China topped the charts in May, indicating a rebound in growth in its key markets, China and the U.S. [1] - Global sales for Apple increased by 15% during April and May, marking the highest growth since the pandemic began in 2020 [1]. - Discounts of up to 2,530 yuan ($351) were offered on Apple's latest iPhone 16 models in May through Chinese e-commerce platforms [1]. Group 2 - The rebound in iPhone sales was partly driven by tariff evaders and double-digit growth in Japan, India, and the Middle Eastern markets [2]. - The U.S. and Chinese markets are crucial for the iPhone's future prospects, as highlighted by Ivan Lam of Counterpoint [2]. Group 3 - Counterpoint Research revised its growth expectations for global smartphone shipments in 2025 down to 1.9% from 4.2%, citing uncertainties related to tariffs [3]. - Shipment growth from China is expected to be nearly flat, with Apple and Samsung's shipments anticipated to slow due to increased consumer costs [3]. - IDC also lowered its 2025 global smartphone shipment growth outlook to 0.6% from 2.3% [3]. Group 4 - IDC forecasts a 3% growth in smartphone shipments in China for 2025, driven by government subsidies, while Apple is expected to decline by 1.9% due to competition from Huawei and economic slowdown [4]. - U.S. smartphone shipment growth is projected to slow to 1.9% in 2025, down from 3.3% in 2017, primarily due to tariff-related price increases [4]. - As of the last check, Apple stock was down 0.82% to $197.57 [4].