In the month of January this year, Apple continued to make further inroads in the Chinese market. January 2021 emerged as the second consecutive month when Apple witnessed a rise in its shipments in China. There was a visible increase in the volume of shipments which indicated that Apple was making the right moves as far as its methods of expanding its presence in China were concerned.
Samik Chatterjee, an analyst at JP Morgan, addressed a note to the investors. The note referred to disclosures regarding the monthly shipment of the smartphones. These disclosures were sourced out from the China Academy of Information and Communications Technology (CAICT).
As per the data gathered, the shipments for the mobile devices jumped by 51% in the month of January as compared to December 2020. A major reason behind this can be attributed to the fact that the domestic smartphone shipments witnessed a growth of 64%. The international shipments, which largely constituted of Apple devices, grew by around 7%.
In January 2021, the shipments of the smartphones that were produced internationally hit the 6.4 million mark. That is definitely good growth considering the fact that the shipment had touched a figure of 6 million units in December 2020 and 2.5 million units in January the same year. Chatterjee predicts that there will be “continued momentum for iPhone shipments” in 2021 and the massive growth can be witnessed in the first quarter itself.
The aforementioned figures are a testimony to the fact that the iPhone 12 and iPhone 12 Pro are going to have a very good run in the Chinese market this year. However, this surge in demand also raises concerns about the possibility of a decline in growth in the smartphone space by the time the fourth quarter of 2021 arrives.
Chatterjee also states that the sales figures for the smartphone, as put together by CAICT, have crossed the 40 million mark for the very first time in close to three years. The last time business saw such a high was in December 2017. If we go by year-by-year figures, the shipments for smartphones increased by 93% and registered sales of 40.1 million units in the month of January.
Chatterjee has remained firm on his price target of $150 for the 12-month AAPL share. This price target was deduced after taking into account the earnings-per-share estimate of 2022 as released by JP Morgan which stood at $4.90.