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Android (NASDAQ:GOOG) (NASDAQ:GOOGL) devices and iPhones (NASDAQ:AAPL) are still seeing “heavy” levels of discounting in China after the country’s 6.18 holiday last month, investment firm Jefferies said, citing recent checks.
“Our industry checks indicate China’s smartphone vol still grew [high-single digits year-over-year] after 618, driven by [high single-digit] growth in Android+[Huawei] and [low double-digit] growth in iPhone,” the research firm wrote.
“In other words, iPhone continued to outgrow Android+HW (iPhone outgrew Android+HW during 618),” the research firm added, noting that continued “heavy discounts” on iPhone, Android and Huawei smartphones are likely the “key drivers of positive [volume] growth.”
Year-to-date, Jefferies estimated that smartphone volume in China has grown 3% year-over-year, as Android and Huawei devices have seen high-single-digit growth, while the iPhone has seen low double-digit declines. However, Apple and its retail partners have recently taken to discounting the iPhone, leading to a resurgence in sales.
As a result of the discounts — with the heaviest being offered by PDD (PDD) — Jefferies believes Apple has regained some lost ground in the past month, though Huawei is still seen as the biggest market share gainer this year.
Conversely, OPPO, another Chinese smartphone brand, is thought to have lost the most share, Jefferies said.
Apple shares fell 0.8% in early Monday trading, while Alphabet was off 1.1%.