Apple Is Making Huge China Market Share Wins. Does That Make AAPL Stock a Buy Here?

Core Insights - Apple's resurgence in China is notable, with the iPhone 17 series capturing 25% of the smartphone market, marking a 37% year-over-year sales increase in October, the first such milestone since 2022 [1][4] - All iPhone 17 models are outperforming their iPhone 16 counterparts by double-digit percentages, supporting CEO Tim Cook's optimism for growth in China this quarter [2] - New iPhone models now represent over 80% of Apple's unit sales in China, with higher average selling prices expected to boost revenue during the holiday season [4] Financial Performance - In fiscal Q4 of 2025, Apple reported revenue of $102.5 billion, an 8% year-over-year increase, with adjusted earnings of $1.85 per share and Services revenue growing 15% to nearly $29 billion [5] - The iPhone revenue reached $49 billion in the quarter, a 6% year-over-year increase, with potential for higher figures if demand could be fully met [6] - The Services division surpassed $100 billion in annual revenue for fiscal 2025, growing 14% year-over-year, indicating broad-based strength across categories [7] Market Dynamics - Apple faces competition from Chinese smartphone manufacturers like Huawei, Xiaomi, and Oppo, but the premium positioning of the iPhone continues to resonate with consumers despite a sluggish economic environment [4] - CEO Tim Cook indicated that supply constraints were due to lower demand forecasts rather than manufacturing issues, with expectations for double-digit iPhone growth in the current quarter [6]