Investing.com — Huawei outpaced Apple (NASDAQ:)’s iPhone when it comes to shipments in China throughout August, in keeping with a be aware from Bernstein on Wednesday.
The agency mentioned complete smartphone shipments in China rose 10% year-over-year, with Huawei main the expansion, posting a 54% enhance.
Apple’s shipments, nevertheless, reportedly remained flat, with sequential declines attributed to customers ready for the discharge of recent iPhone fashions in September, mentioned Bernstein.
Whereas Huawei’s spectacular development got here off a low base, Bernstein famous that the model’s “sequential momentum has been flattish lately.”
The agency acknowledged that non-Huawei Android gadgets additionally skilled modest development of 6% in August, additional supporting the restoration in China’s smartphone market.
12 months-to-date smartphone sell-through in China elevated by 9% year-over-year, exceeding Bernstein’s 7% forecast for 2024.
In the meantime, Bernstein mentioned Huawei noticed a 66% surge in shipments YTD, whereas Apple declined by 7%.
They cautioned that the rest of 2024 might be “compared against a higher base,” making sustained development more difficult.
Bernstein additionally highlighted shifting client preferences towards high-end smartphones priced above $850 (RMB 6,000). The report identified that “flagship segment will benefit MediaTek and Qualcomm (NASDAQ:), as well as Arm,” due to greater royalties and broader adoption of v9 structure.
Nevertheless, they mentioned that sub-flagship fashions priced between $560-$850 have stabilized, probably because of the excessive price of AI-powered telephones limiting broader adoption.
Whereas Apple’s shipments in August marked the third consecutive month of underperformance, Bernstein sees no main stock dangers.
“Apple continued under-shipping, and August made that three consecutive months,” wrote Bernstein, including that they “don’t see inventory as an issue.”
The upcoming Golden Week and China’s lately introduced stimulus measures are anticipated to offer extra readability on market developments and stock ranges.
Bernstein additionally reported slight positive factors for MediaTek, whose unit share edged greater in August after declines earlier this 12 months. In the meantime, OLED penetration throughout non-Apple and non-Huawei manufacturers is alleged to have remained flat, with foldable gadgets representing solely 6% of complete smartphone gross sales.
