Latest news with #618
The Star
11-07-2025
- Business
- The Star
Overseas customers flock to Chinese online marketplaces
Smart devices for the home, intelligent hardware, niche sports products and customised equipment made by Chinese manufacturers have gained popularity among overseas consumers, whose demand for personalised merchandise is rising, according to a report released by Alibaba's business-to-business platform that helps facilitate foreign trade. The report said artificial intelligence technology has accelerated the popularisation of intelligent products, with overseas consumers increasingly favouring consumer electronics products and small home appliances with innovative technology. Wearable devices, virtual reality glasses, smart speakers plus camping, hiking and other outdoor sports equipment have also seen booming sales. During the"618" shopping festival, a sales event spanning weeks that culminates on June 18, orders on the platform surged 42 percent year-on-year, data from showed. The gross merchandise value increased nearly 30 percent compared with the same period last year. Orders from JD Global Sales, JD's cross-border e-commerce business division, soared 236 percent year-on-year during the mid-year promotional campaign. Sales of digital products increased nearly fourfold year-on-year, while the transaction volume of home appliances grew more than threefold. Orders for computers and office products increased 210 percent from a year earlier. The company has optimised its direct-mail logistics network and includes 37 countries and regions. These improvements ensure faster, more affordable delivery for global customers. Buyers across 17 markets — including Japan, South Korea, Singapore, Thailand, Malaysia, Vietnam, Cambodia, Australia, and New Zealand — can also enjoy free shipping promotions. The e-commerce platform Taobao has expanded its free global delivery coverage to 12 countries and regions this year, including Singapore, Malaysia, South Korea, Australia, Japan, Thailand, Cambodia, Kazakhstan and Mongolia. The program waives the shipping fees for orders over a certain amount. A convenient return service, which allows shoppers to return unwanted items at nearby collection points, is also available, Taobao said. Mandy, a Malaysian Chinese student, takes advantage of digital payment options and free shipping services in Malaysia offered by Chinese e-commerce platforms. She recently bought beauty and skin care products made in China, which were "quite affordable". Mandy said she often shares the must-buy lists on social media platforms, adding that livestreaming and short videos are very popular in Southeast Asia. There are even special discounts in livestreaming sessions on Taobao, she added. Wang Peng, an associate researcher at the Beijing Academy of Social Sciences, said the growing popularity of Chinese-made products in the global market shows: "Chinese factories, which depend on improved supply chains and supporting abilities related to production, can churn out high-quality commodities. The products have gained an upper hand in terms of cost and price compared with those of their counterparts around the world." Chinese e-commerce apps have been among the most downloaded and favored apps in many countries in recent months, Wang said. Global inflation has made Chinese e-retailers the preferred option for overseas consumers demanding high-quality and low-priced goods. "An increasing number of made-in-China products are gaining popularity among overseas consumers, which is an affirmation of the country's robust manufacturing capabilities, product quality and homegrown brands," said Hong Yong, an associate research fellow at the Chinese Academy of International Trade and Economic Cooperation. To attract new foreign consumers, Hong said Chinese enterprises should step up investment in product research and development, design and marketing. As the popularity of Chinese-made products is underpinned by logistics infrastructure, and the payment and operation services of e-retailers, it is vital for Chinese e-commerce platforms to explore new logistics and delivery models, he said. This includes building overseas warehouses, expanding international cooperation in the payment domain, and enlarging their footprint in emerging markets, such as the Middle East and Africa. Tariff hikes Hannah Evans, a university student in New York, said she prefers buying Chinese products, such as apparel, kitchen utensils and sporting equipment on Chinese e-commerce platforms as she has access to a dizzying array of choices at much cheaper prices. "Using these apps is amazing because it is like buying from the factory of the world. You are buying directly from China. My phone case is from Taobao and it's only 9.9 yuan ($1.38)," she said. The recent tariff increases by the US government have affected her shopping experience to some extent, she said. However, even with the "insane" tariffs on Chinese goods right now, if Americans buy directly from China, it's still going to be cheaper than if they go to a local store like Walmart, she said. The Trump administration has decided to end the duty-free de minimis treatment for small packages and low-value shipments worth $800 or less from China. However, these measures have not deterred US consumers from purchasing Chinese products. Instead, they have sparked a surge in popularity for Chinese shopping apps. Taobao has hit the top of Apple App Store's free download charts in 16 countries, while Chinese cross-border business-to-business e-commerce app DHgate has secured second spot in downloads on the Apple App Store in the US, just behind OpenAI's ChatGPT. Experts said the meteoric rise of Chinese e-commerce apps in the US app marketplaces signals a potential paradigm shift in Americans' shopping habits, as they increasingly bypass traditional retailers and turn to international platforms for their purchases in the face of rising prices at home. Sales of home appliances, outdoor sports equipment, pet supplies, healthcare and beauty products, and electronic devices have witnessed rapid growth in overseas markets, according to DHgate. Founded in 2004, DHgate serves more than 100 million registered buyers across 225 countries and regions by connecting them with over 2.78 million sellers worldwide. The company said its growth trajectory is not a temporary phenomenon, but the result of years of efforts to foster a trusted ecosystem with micro, small, and medium-sized enterprises and source manufacturers. Market observers attribute DHgate's sudden popularity in the US to Chinese suppliers and manufacturers using the short-video platform TikTok to educate US consumers on the global luxury goods market amid increased US tariffs. Many products, including clothing, handbags, and accessories that are assumed to be European-made, come from factories in China. Shoppers can buy these products directly from Chinese suppliers via e-commerce platforms like DHgate. Cui Lili, a professor of digital economy at Shanghai University of Finance and Economics, said the popularity of Chinese e-commerce platforms in overseas markets indicates domestic brands have gained wide recognition abroad and will help the country move toward the high-end of the value chain. Globalization push China's cross-border e-commerce sector has seen robust growth in recent years. The sector's imports and exports reached 2.63 trillion yuan in 2024, an increase of 10.8 percent year-on-year, said the General Administration of Customs. Cross-border e-commerce has become an important driving force for China's exports amid downward economic pressures and external uncertainties. Meanwhile, Chinese cross-border online retailers are speeding up their push into overseas markets amid a broader drive to cultivate new users and diversify revenue sources. Temu, the cross-border e-commerce platform launched by Chinese online discounter PDD Holdings, is accelerating its expansion into new markets. Launched in the US in September 2022, it has entered more than 70 countries in North America, Europe, Asia and Oceania. Temu offers a wide selection of merchandise, including apparel, consumer electronics, jewellery, shoes, cosmetics, and baby products with deep discounts and coupons as part of its strategy to attract price-conscious consumers. Most of the products are shipped directly from factories or warehouses in China. Fast-fashion online retailer Shein is ratcheting up resources to help Chinese manufacturers and brands expand their presence abroad, and boost the transformation of traditional industries by making use of its digital and flexible supply chains. Shein said for sellers who are good at designing and producing products, but have no overseas sales and operations experience, it will provide one-stop services, including commodity operations, warehousing, logistics, customer service and after-sales service. "In recent years, Chinese e-commerce platforms have taken active steps to make forays into overseas markets by offering shopping subsidies, expanding free shipping services and launching promotional campaigns, thus increasing their influence abroad," said Zhang Zhouping, an independent analyst who has been tracking the cross-border e-commerce sector for more than a decade. As a new form of foreign trade, cross-border e-commerce has served as a vital channel for Chinese enterprises to expand overseas, Zhang said. "Price, quality and service are the most important factors consumers consider when buying products, and cost-effective goods have shown some obvious advantages amid global economic downward pressures." An increasing number of Chinese merchants are now making use of cross-border e-commerce platforms to sell products globally, which provide a new way for micro, small and medium-sized enterprises to boost their global reach and build up new brands, he added. "A core advantage of Temu and Shein lies in products with competitive prices and fast delivery, which is highly reliant on the establishment of supply chains," he said, adding platforms that provide good shopping experiences and after-sale services will gain an upper hand amid increasingly fierce international competition. Zhu Keli, founding director of the China Institute of New Economy, said in order to mitigate the impact of the tariff hikes, Chinese e-commerce platforms should invest more in establishing overseas warehouses, accelerate steps to expand their footprint in more diversified and emerging markets, and strengthen cooperation with international logistics companies to improve delivery efficiency and lower logistics costs. - China Daily/ANN
Yahoo
08-07-2025
- Business
- Yahoo
Apple's iPhone Defies Weakness in the World's Largest Smartphone Market
Chinese smartphone shipments got walloped in Maydown nearly 22% year-on-yearthanks largely to soft Android sales. Those devices slid to about 18 million units, their weakest month in a year. The iPhone didn't escape unscathed, dipping around 10% to 4.5 million, but it staged a solid 29% bounce from April as Apple (NASDAQ:AAPL) geared up for the big 618 shopping push. What's really striking is how Apple's holding its own against non-local rivals. During the 618 festival, Huawei volumes jumped over 20%, but the rest of the Android crowd slipped about 4%. And while Android makers are wrestling with bloated inventories, Apple's stock levels look just righthelping it maintain roughly 70% of the non-China branded smartphone market. In a market this sluggish, that kind of premium positioning and balanced supply could let Apple steady the ship and even snatch a bit more share as local brands chase volume with deep discounts. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
08-07-2025
- Business
- Yahoo
iPhone Sales Are Growing in China Again. Should You Buy, Sell, or Hold Apple Stock Here?
After a long dry spell, Apple (AAPL) has finally turned a corner in China. For the first time since the second quarter of 2023, iPhone sales in the nation grew 8% year-over-year (YOY) in Q2 2025. The turnaround, as per Counterpoint Research, breaks a two-year streak of declining sales in one of Apple's most strategically vital markets. Several levers drove this sudden change in tide. Apple slashed prices aggressively in May, a move timed deliberately ahead of China's 618 shopping festival. The strategy, coupled with support from a national subsidy program aimed at encouraging smartphone upgrades, triggered a noticeable spike in demand. This Analyst Just Raised His Broadcom Stock Price Target by 70%. Should You Buy AVGO Now? Why Alibaba Stock Looks Like a Screaming Buy After Falling 27% From Its 2025 Highs 2 ETFs Offering Juicy Dividend Yields of 20% or Higher Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Counterpoint Associate Director Ethan Qi confirmed that three iPhone variants landed in the top half of China's bestseller charts during 618. Though the 618 shopping period itself remained flat compared to last year, the lead-up month of May delivered the real gains. With strong demand for the iPhone 16 Pro and Pro Max models, Apple is now expected to post high single-digit growth in China for the remainder of the quarter. China remains a critical source of revenue, and if Apple maintains its current momentum, this rebound could extend deeper into the fiscal year. Apple may be synonymous with the iPhone, but the company's value story runs far deeper than any single product line. Headquartered in California, the tech giant holds a commanding market capitalization of $3.2 trillion, with a business model that has steadily evolved into a powerful ecosystem play. While the iPhone remains the core revenue driver, Apple's Services segment has become an engine of dependable cash flow. At the same time, Apple has carved out leadership in the wearables and hearables markets through sustained demand for the Apple Watch and AirPods. These products not only contribute to revenue but deepen user engagement across the broader ecosystem. Investor sentiment reflects this growing confidence. Over the past three months, AAPL stock has gained 16%. Meanwhile, in the past five sessions alone, the stock has jumped 4%, easily outpacing the broader S&P 500 Index's ($SPX) 1% rise. AAPL stock trades at 30 times forward earnings and 8 times sales, both well above industry averages, signaling premium expectations. For income-seeking investors, Apple also offers stability through dividends. It pays an annualized forward dividend of $1.01 per share, yielding 0.47%, with its most recent $0.26 per share payout made on May 15 to shareholders of record as of May 12. The company has raised its dividend for 13 consecutive years. On May 1, Apple delivered its second-quarter earnings for fiscal 2025, surpassing Street forecasts. Total revenue reached $95.4 billion, up 5.1% YOY and coming in ahead of consensus estimates of $94.3 billion. The company's Products revenue came in at $68.7 billion, growing 2.7% YOY. The uptick was led by better-than-expected iPhone, iPad, and Mac sales. Importantly, Apple noted that its active installed base of devices hit record levels across all categories and geographies, a direct result of customer satisfaction and long-term brand loyalty. Services revenue climbed 11.6% YOY to $26.6 billion, even after accounting for foreign exchange headwinds. This line item continues to be Apple's most durable growth lever. Meanwhile, gross margin improved to 47.1%, landing in the midpoint of guidance. Net income grew 4% to $24.8 billion, and EPS rose 7.8% to $1.65, ahead of the Street's $1.61 estimate. Operating cash flow remained strong at $24 billion, underlining the company's financial health and cash-generation capacity. Looking ahead, Apple guided for total company revenue in the June quarter to grow in the low- to mid-single-digit range YOY. Gross margin is expected between 45.5% and 46.5%, even after including an estimated $900 million hit from tariff-related costs. Operating expenses are projected between $15.3 billion and $15.5 billion. As for earnings, analysts anticipate fiscal 2025 third-quarter EPS to rise 1.4% YOY to $1.42. For full fiscal 2025, EPS is projected to increase 5.3% to $7.11 and climb another 8.3% to $7.70 in fiscal 2026. Analyst sentiment on AAPL stock remains broadly optimistic, anchored by the company's stability and long-term growth potential. The stock holds an overall rating of 'Moderate Buy,' reflecting a consensus view across Wall Street that balances upside potential with near-term caution. Of the 37 analysts covering AAPL, 18 offer a 'Strong Buy,' three rate it as a 'Moderate Buy,' 14 maintain a 'Hold,' and two assign a 'Strong Sell" rating. While not universally bullish, the majority of analysts lean in favor of continued upside. The average price target of $230.92 represents potential upside of 10%. Meanwhile, the Street-High target of $300 suggests a potential climb of 43% from current levels. On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Business Insider
05-07-2025
- Business
- Business Insider
Apple (AAPL) Sales Feel the Crunch in China
Sales of foreign-branded mobile phones in China, including U.S. tech giant Apple (AAPL), have dialed down. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Shipments Fall According to new figures from the China Academy of Information and Communications Technology (CAICT), demand for overseas phones dropped 9.7% year-on-year in May. Calculations based on the data showed that May shipments of foreign-branded phones in China fell to 4.54 million handsets from the same month last year. Even though the CAICT doesn't break down its figures by brand, Apple is the largest foreign mobile phone maker in China's smartphone-dominated market. Apple has faced increased competition from domestic rivals and has cut prices to stay competitive. Chinese e-commerce platforms offered discounts of up to 2,530 yuan (351) on Apple's latest iPhone 16 models in May. High Huawei However, on a brighter note for Apple, data from another source – Counterpoint Research – revealed that in the second quarter between April 1 and June 22, iPhone sales increased 8% year-over-year. This was the first time since the second quarter of 2023 that Apple has seen growth in China. But Chinese rival Huawei saw sales climb 12% during the same period. 'Apple's adjustment of iPhone prices in May was well timed and well received, coming a week ahead of the 618 shopping festival,' Ethan Qi, associate director at Counterpoint Research, said in a statement. Ivan Lam, senior analyst at Counterpoint Research, added: 'Huawei is still riding high on the loyalty of its core users as they replace their old phones with new Huawei releases.' Is AAPL a Good Stock to Buy Now? On TipRanks, AAPL has a Moderate Buy consensus based on 15 Buy, 10 Hold and 2 Sell ratings. Its highest price target is $270. AAPL stock's consensus price target is $226.36 implying a 6% upside.
Yahoo
03-07-2025
- Business
- Yahoo
Apple iPhone Sales Grow in China for First Time Since 2023 on Promotions
Apple iPhone sales in China grew 8% in the second quarter, according to a report from Counterpoint Research. It was the first such period of growth for Apple in China since the second quarter of 2023. The iPhone maker's bump in sales was driven in part by promotional pricing for the iPhone 16 lineup, Counterpoint said,Apple (AAPL) iPhone sales in China rose 8% year-over-year in the second quarter, the first period of quarterly growth in the country since 2023. The sales bump was driven in part by promotional pricing for the iPhone 16 lineup, particularly the Pro and Pro Max models, according to a report from Counterpoint Research. "Apple's adjustment of iPhone prices in May was well timed and well received, coming a week ahead of the 618 shopping festival," Counterpoint Associate Director Ethan Qi said. The 618 festival is an annual event in China during which brands typically offer discounts. Huawei, the Chinese smartphone giant, saw sales increase 12%, beating out Apple for the largest growth in the period. The company has done an effective job of capitalizing on brand loyalty in China, as consumers replace their old Huawei devices with new ones, Counterpoint said. Shares of Apple rose less than 1% soon after markets opened Thursday. The stock has lost roughly 15% of its value this year amid concerns about the impact of the Trump administration's tariffs given Apple's production footprint in China. The company has shifted production to India, which led President Donald Trump in May to threaten a 25% tariff on all iPhones produced outside the U.S. Read the original article on Investopedia Sign in to access your portfolio
