Apple's iPhone Sell-in to China Declines 19% YoY
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Sales Decline: According to UBS, Apple's iPhone sell-in numbers to China fell 19% year-over-year in May, indicating that while shipment timing can be volatile month-to-month, the weakening sales momentum has a mildly negative impact on the company's performance.
- Supply Chain Challenges: UBS analysts noted that the year-over-year decline in iPhone sales suggests potential supply chain headwinds that were expected to be largely resolved by the end of the March quarter, thereby affecting Apple's performance in the Chinese market.
- Quarterly Outlook: UBS estimates that iPhone unit sell-in to China is down about 10% for the first two months of the June quarter, and given that June typically sees a seasonal sales downturn, the outlook for iPhone sales in China appears less optimistic.
- Stock Price Reaction: Apple's shares fell 5.5% on Thursday due to the company raising starting prices on many devices, including the MacBook Neo, amid unprecedented memory shortages, although iPhones were not included in the price hikes.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 293.080
Low
239.00
Averages
306.89
High
350.00
Current: 293.080
Low
239.00
Averages
306.89
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, Wearables, Home and Accessories. Its services include advertising, AppleCare, cloud services, digital content, and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its wearables include smartwatches, wireless headphones, and spatial computers. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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See More
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See More
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- Surge in Component Costs: According to Counterpoint Research, memory and storage prices have quadrupled over the past three quarters, with CEO Tim Cook describing it as a 'hundred-year flood,' indicating that Apple may need to continue raising prices in the future.
- iPhone Price Expectations: Counterpoint estimates that rising component costs could add approximately $200 to the cost of each iPhone, with expected price increases of $150 to $200 across the lineup, further influencing consumer purchasing decisions.
- Market Competitive Pressure: IDC forecasts that all new iPhone models will feature 12GB of RAM to support more Apple Intelligence functionalities, while 54% of iPhones shipped since 2022 will not support the full new Siri experience, providing Apple with a rationale to justify higher prices based on enhanced hardware capabilities.
See More
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