iPhone Recovery Boosting AAPL Stock in China: Time to Buy?

Apple has faced challenges in the Chinese market due to tough competition from Huawei and Xiaomi, resulting in a 2.3% decrease in iPhone sales. However, recent data shows an 8% year-over-year growth in the region, driven by strong iPhone 16 Pro sales. Apple’s gross margin is expected to be lower in the third quarter due to tariffs.

Apple has expanded the availability of Apple Intelligence with new features like Live Translation and updates to visual intelligence. Services revenues grew 11.6% in the fiscal second quarter, with over 1 billion paid subscribers across Apple’s portfolio. New Apple Wallet features powered by Apple Intelligence are expected to drive further growth in Services revenues.

Apple’s earnings estimate for fiscal 2025 shows steady growth, but the stock has declined 9.9% year to date. AAPL shares are trading below the 200-day moving average and have a stretched valuation. The Services business is a strong performer, but Apple Intelligence’s underwhelming performance remains a concern for investors.AAPL currently has a Zacks Rank #3 (Hold).

Read more at Nasdaq: iPhone Recovering Ground in China: Buy, Sell or Hold the AAPL Stock?