Apple iPhone Shipments To China Outperform In May, UBS Says By Investing.com


© Reuters. Apple iPhone (AAPL) shipments to China outperform in May, UBS says

By Sam Boughedda

According to a note from UBS analyst David Vogt on Tuesday, in May, Apple’s (NASDAQ 🙂) iPhone sales in China posted a strong rebound of +13% year-on-year, “notably outperforming the market.”

The analyst said in a note to clients that China’s iPhone share rose in May from 320/890 bps YoY/MoM to 16.4.

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“In May, China’s overall smartphone shipments were down around 9% YoY despite easy competition last year (May 2021 down around 31% YoY). However, on a monthly basis, shipments were up around 16% as data suggests Covid lockdowns and supply chain shortages on the margin are easing, in line with our recent audits. More importantly, we estimate that iPhone shipments are up about 13% year-over-year and about 155% month-over-month, with Apple taking a large share, consistent with our audits. writes Vogt.

“In May, we estimate that Apple’s shipment market share in China was 16.4%, an increase of 320 basis points year-on-year and 890 basis points year-on-year. Given the strength of May, we estimate iPhone shipments in China were down only 9% in April and May combined compared to the broader market down 23%.

As a result, UBS estimates its estimate of 42 million iPhones for the June quarter should already capture potential disruptions minimizing downside risk ahead of the tech giant’s earnings release next month.

“Overall, smartphone shipments in China were down 14% year-on-year in May, following a 42%/34% decline in March/April. While comps were easy in May (down 32% in May 2021), component lockups and shortages on the margin were likely headwinds last month despite signs of margin easing. Given the modest easing, local brand shipments improved about 1% month-over-month, but significantly underperformed iPhone shipments in the month. As such, we estimate local brand share fell in May to ~84% from 93% in April and down 320bps year-on-year,” added Vogt who maintained a price target of $185 and a buy rating on the title.

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