According to JPMorgan analysts, the global smartphone industry is showing signs of recovery, with iPhone shipments outperforming expectations in the second quarter of 2024.
The US investment bank said in a note Tuesday that the IDC's quarterly smartphone shipment tracker revealed a modest -1% sequential decline for 2Q24, which contrasts with the typical seasonality of a +2% increase.
Despite this decline, JPMorgan noted the industry experienced a +6% year-over-year increase in the June quarter, slightly below the +8% growth seen in the first quarter of 2024.
In addition, the IDC noted that while demand has not fully rebounded and remains challenged in several markets, the volume increase in the first half of 2024 suggests a modest recovery for the entire year.
This scenario is said to provide a more favorable operating environment for smartphone OEMs and suppliers compared to the challenging years of 2023 and 2022.
Regarding Apple (NASDAQ:AAPL), JPMorgan highlighted that iPhone shipments in 2Q24 tracked better than expected.
Although this performance implied a lower year-over-year market share, the bank says it sets a positive tone heading into the upcoming earnings report. JPMorgan believes the unexpected strength in iPhone volumes could be a critical factor in Apple's performance for the remainder of the fiscal year.
Overall, JPMorgan believes the data indicates a cautiously optimistic outlook for the smartphone industry. The improved visibility into a full-year recovery suggests that both manufacturers and suppliers can expect a more stable and potentially profitable market environment.
As Apple prepares to report its earnings, the better-than-expected iPhone shipment volumes are a key highlight for investors and analysts alike.