Apple CEO Tim Cook holds a brand new iPhone 15 Pro through the Wonderlust undertaking launch occasion on the firm’s headquarters in Cupertino, California, Sept. 12, 2023.
Loren Elliott | Reuters
Shipments of iPhones are more likely to take successful this yr due largely to the rising reputation of foldable telephones and Huawei’s resurgence within the Chinese market, says prime Apple analyst Ming-Chi Kuo of TF International Securities.
Apple, which grew to become the highest smartphone vendor in China final yr for the primary time, trimmed shipments of “key upstream semiconductor components” to round 200 million models, translating to a 15% year-over-year drop in iPhone shipments, in response to Kuo’s weblog submit on Tuesday about his newest provide chain survey.
Kuo wrote that Apple’s weekly shipments in China have fallen by 30% to 40% from a yr earlier in current weeks, “and this downward trend is expected to continue.”
“Apple may have the most significant decline among the major global mobile phone brands in 2024,” Kuo wrote.
Huawei’s comeback as a number one smartphone maker coupled with the “increasing preference for foldable phones among high-end users as their first choice” within the Chinese market are key causes for the iPhone’s potential decline, Kuo wrote. New telephone designs integrating generative synthetic intelligence are additionally altering the market.
Apple did not instantly reply to a request for remark.
Samsung has upped shipments of its new Galaxy S24 collection this yr by 5% to 10% because it sees “higher-than-expected” demand due to its AI-powered options, Kuo wrote. Apple, in the meantime, has lowered its cargo forecast for the iPhone 15 within the first half of 2024, he added.
With no main modifications to the iPhone’s designs anticipated till 2025 “at the earliest,” Kuo wrote, Apple’s “shipment momentum and ecosystem growth” are poised to decrease within the meantime.
Apple is scheduled to report quarterly outcomes Thursday. Analysts predict to see income progress of simply 0.6% from a yr earlier to $117.91 billion, in response to LSEG, previously Refinitiv. And common projections present Apple recording single-digit progress for the remainder of the calendar yr.
Apple shares have been down 1.7% on Tuesday afternoon to $188.46.
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