© Reuters.
By Senad Karaahmetovic
Based on the China Academy of Info 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 have been 18.28 million, down 29% YoY. Non-China branded cell phone shipments (e.g. Apple’s iPhone) have 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 usually smooth forward of the launch of a brand new iPhone,” an UBS analyst mentioned.
“Cargo share doesn’t correlate to promote by means of share as we estimate iPhone promote by means of share in China throughout July/YTD was roughly 14%/16% respectively (Supply: Counterpoint),” he added.
The analyst additionally reminded traders that the iPhone 14 launch occasion was one week sooner than for iPhone 13 final 12 months, which ought to end in extra “noisy” iPhone shipments into China in August and September.
Consequently, the analyst left his September estimates unchanged for iPhone items.
A Wells Fargo analyst believes the CAICT knowledge “is an incremental destructive knowledge level, and brings into query how properly China is recovering from COVID-mitigation restrictions.”
For the analyst, the July knowledge is very destructive 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 exhibits 5G cell phone unit gross sales really decreased as a share of total China home unit shipments, with 5G items comprising solely 74% of items shipped within the month of July (vs. 80s% in Apr-Jun). That is notably necessary for QCOM, QRVO, and SWKS, that are all uncovered to the 5G product cycle taking part in out,” the analyst added.
