iPhone shipments continued their China rebound in June, surpassing Huawei, Bernstein noted in a Friday report.
Total smartphone shipments in China increased by 3% year-over-year last month, driven entirely by Huawei’s 24% growth.
While iPhone shipments rose by 5%, non-Huawei Android devices saw a 1% decline. Apple (NASDAQ:AAPL) overtook Huawei in unit shipments, likely due to a significant discount that was available for most of the month, according to Bernstein analysts.
The smartphone sell-through shipment growth in June marks ten consecutive months of year-over-year growth, except for January when shipments declined due to the timing of the Chinese New Year, which occurred in February this year compared to January last year.
June also saw a sequential increase from May, driven by promotions during the "618" Shopping Festival, Bernstein notes.
Year-to-date, smartphone sell-through shipments in China have increased by 8% year-over-year, with Huawei surging 68%, non-Huawei/Apple brands growing 3%, and Apple experiencing a 7% decline.
The 8% year-to-date jump is slightly ahead of expectations, but it’s important to note that the second half of 2023 had higher shipments, and the remainder of 2024 will be compared against a higher baseline.
Comparing the “sell-through” data from CINNO with the “sell-in” data from CATR in June indicates that iPhone inventories in China may still be elevated, Bernstein points out.
"That said, we note that Apple has commented that global channel inventories exited the June quarter at the low end of historical levels, and we do not see channel inventory as an issue for investors,” the investment firm wrote.
Inventory buildup for Android was more modest, and with MediaTek and Qualcomm (NASDAQ:QCOM) both guiding the September quarter below seasonality, this should help clear up any excess.