Huawei shipment surpassed iPhone in July, new data shows By

-- New data from Bernstein reveals that Huawei outpaced iPhone in smartphone shipments in China during July 2024.

The Apple put optionsfirm explained in a note that total smartphone shipments in China grew by 14% year-over-year (YoY), with Huawei leading the growth at 67%, contributing to half of the total increase.

In contrast, iPhone shipments are said to have fallen by 9%, following a surge in demand during May and June when Apple (NASDAQ:) offered attractive discounts.

Meanwhile, non-Huawei Android smartphones also saw an 11% growth, indicating a broader recovery in the Android market.

"Note the fast YoY growth of Huawei was vs. a low base, & sequentially Huawei’s shipment has been flattish for some months.," wrote Bernstein.

They added that the decline in iPhone shipments suggests the demand boost from earlier months has waned.

For the year to date (YTD), Bernstein says smartphone sell-through in China has risen by 9%, with Huawei experiencing a 68% increase, Apple declining by 7%, and other brands growing by 3%.

This 9% YTD increase is ahead of Bernstein’s initial projection of 7%, though the analysts remain cautious as shipments in the second half of 2023 were already higher, and the rest of 2024 will be compared against a stronger base.

A notable trend in July was said to be the continued shift toward high-end smartphones, particularly in the non-Apple and non-Huawei segments.

The trend, possibly driven by artificial intelligence (AI) advancements, is expected to benefit companies like MediaTek, Qualcomm (NASDAQ:), and Arm, with the latter seeing gains from higher royalty rates due to increased v9 adoption in premium smartphones.

While there are lingering concerns about iPhone inventories in China, Bernstein does not view this as a significant issue for investors.

"We note that Apple has commented that global channel inventories exited the June quarter at the low end of historical levels, and we do not see channel inventory as an issue for investors," they wrote.

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