UBS Maintains Neutral Rating on Apple Inc. (NASDAQ:AAPL) Amid Growth in China

• Apple Inc. (NASDAQ:AAPL) sees an 8% year-over-year increase in iPhone sales in China for Q2 2025.

• The growth is attributed to promotional pricing of the iPhone 16 lineup during the 618 shopping festival.

• Despite positive sales growth, Apple's performance was outpaced by Huawei, highlighting the competitive nature of the Chinese market.

On July 3, 2025, UBS reiterated its Neutral rating for Apple Inc. (NASDAQ:AAPL), advising investors to hold the stock. At the time, Apple's share price was $214.33. This rating comes amidst a notable development in Apple's performance in China, a key market for the company.

Apple has achieved an 8% year-over-year increase in iPhone sales in China during the second quarter of 2025. This marks the first quarterly growth in the region since 2023. The growth is largely due to promotional pricing strategies for the iPhone 16 lineup, particularly the Pro and Pro Max models. These strategies were well-timed with the 618 shopping festival, a major discount event in China.

Despite this positive development, Apple's growth in China was outpaced by Huawei, a major competitor, which reported a 12% increase in sales. This highlights the competitive nature of the Chinese smartphone market. Apple's strategic price adjustments, including increased trade-in values, played a crucial role in boosting sales during this period.

The resurgence in iPhone sales is a significant milestone for Apple as it seeks to solidify its presence in China, one of its most vital markets. The company's market capitalization stands at approximately $3.2 trillion, reflecting its substantial influence in the tech industry. As of the latest trading day, Apple's stock price increased by approximately 0.90% to $214.36, with a trading volume of 23.8 million shares.

Apple's stock has fluctuated between a low of $211.81 and a high of $214.64 during the trading day. Over the past year, the stock has reached a high of $260.10 and a low of $169.21. These figures indicate the volatility and potential for growth in Apple's stock, making UBS's Neutral rating a cautious yet reasonable stance for investors.