Apple Shares Surge 2% on Chinese Market Rebound

Apple Inc. (AAPL.US) shares rose nearly 2% on Monday, defying the broader market trend as the six major technology giants collectively turned red. This dramatic turnaround came despite market rumors of continued pressure on iPhone shipment volumes. The surge in Apple's stock price was driven by a significant development in the Chinese smartphone market, as revealed in a recent report.

The report highlighted a dramatic turnaround in the Chinese smartphone market in February, with foreign brand shipments surging 9% year-over-year, a stark contrast to the 21% decline in January. This rebound was the largest monthly increase since June 2024, reaching 12%. Despite potential short-term impacts on financial reports due to pre-launch inventory adjustments, the overall trend remains positive, leading to a maintained "buy" rating and a target price of $294 for Apple.

While the market share of foreign brands decreased slightly from 16% to 13% month-over-month, indicating intense competition from domestic brands, Apple has introduced new technological advancements to stay ahead. The latest Apple Intelligence feature has been adapted for multiple languages, with iOS 18.4 now supporting French, German, Japanese, and five other languages, and for the first time, offering permissions to users in the European Union.

Additionally, the Vision Pro device has been upgraded to allow users to generate text through ChatGPT, create emojis with Genmoji, and use AI tools for image editing. These enhancements underscore Apple's commitment to innovation and its ability to adapt to the evolving market dynamics, particularly in the competitive Chinese smartphone market. The introduction of these new features is likely to bolster Apple's position in the market, further driving its stock price upward.