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# Apple: The China Revenue Decline That No One Realizes Is Bullish (Archive)
- URL: https://www.huntingalphas.com/apple-the-china-revenue-decline-that-no-one-realizes-is-bullish-archive/
- Published: 2025-01-31T12:45:00.000Z
- Updated: 2026-02-28T10:49:07.000Z
- Description: China weakness masks robust demand, services growth and margin-expanding insourcing tailwinds.
- Author: Vish (Hunting Alphas)
- Tags: 5-Minute Pitches, #noindex, Archive, #sa-origin, AAPL, Consumer

*This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.*

## Elevator Pitch

- Apple's China revenues fell 11% YoY. But contrary to what you may think; it does not spell weak demand in that region. In fact, China demand is stronger than expected.
- Product and iPhone sales have been stagnant for the past 3 years. The iPhone 16 Series launch missed estimates in the holiday season.
- But with a huge and still-growing installed base of products, AAPL is enjoying steady and robust double-digit growth in service revenues at double the gross margins vs. the product business.
- The stock trades at a 25% premium vs. history on a 1-yr Fwd P/E basis. But I think the bullish fundamentals make it worthwhile. Relative technicals vs. SPX are also bullish.
- Insourcing in 2025 is a key catalyst for product gross margin expansion.

Read the full article [here](https://seekingalpha.com/article/4753773-apple-china-revenue-decline-no-one-realize-bullish?ref=huntingalphas.com).

#### Disclosures and Disclaimers

**Past performance ≠ future results. Not investment advice. See* [**full Disclaimer*](https://www.huntingalphas.com/disclaimer/)**.*