© Reuters. China Cellular Telephone Cargo Information for July is ‘Incremental Unfavorable’ for Chipmakers
By Senad Karaahmetovic
In response to the China Academy of Data and Communications Know-how (CAICT), the variety of smartphones shipped domestically was 19.12 million, down 31% YoY and 30% MoM.
China-branded cell phone shipments had been 18.28 million, down 29% YoY. Non-China branded cell phone shipments (e.g. Apple’s iPhone) had been 1.63 million, down 42% YoY.
Apple’s (NASDAQ:) share of shipments fell to 7% from 10% in June, however nonetheless up 3% in comparison with a year-ago interval.
“Apple cargo share is often smooth forward of the launch of a brand new iPhone,” an UBS analyst stated.
“Cargo share doesn’t correlate to promote by share as we estimate iPhone promote by share in China throughout July/YTD was roughly 14%/16% respectively (Supply: Counterpoint),” he added.
The analyst additionally reminded buyers that the iPhone 14 launch occasion was one week sooner than for iPhone 13 final yr, which ought to end in extra “noisy” iPhone shipments into China in August and September.
Because of this, the analyst left his September estimates unchanged for iPhone models.
A Wells Fargo analyst believes the CAICT information “is an incremental unfavorable information level, and brings into query how properly China is recovering from COVID-mitigation restrictions.”
For the analyst, the July information is particularly unfavorable for chipmakers, together with Qualcomm (NASDAQ:), Qorvo (NASDAQ:), and Skyworks Options (NASDAQ:). Qorvo is highlighted given its excessive publicity to Chinese language manufacturers.
“The information additionally reveals 5G cell phone unit gross sales really decreased as a proportion of total China home unit shipments, with 5G models comprising solely 74% of models shipped within the month of July (vs. 80s% in Apr-Jun). That is notably essential for QCOM, QRVO, and SWKS, that are all uncovered to the 5G product cycle taking part in out,” the analyst added.
