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Apple (NASDAQ:AAPL) lost smartphone market share in China in May despite “deep” discounting, investment firm UBS said, citing data from Counterpoint Research.
Shares rose 1.2% in early trading on Monday.
Cupertino, Calif.-based Apple ended the month with 11% of the smartphone market, even as iPhone units rose 0.9% year-over-year, analyst David Vogt wrote in an investor note. “We estimate iPhone sell-through in China was largely flat YoY during May-24 in a market that grew 11% YoY,” Vogt wrote. “While Apple bulls may note the data is backwards looking and is not likely indicative of Apple’s AI smartphone opportunity next year, we note that iPhone share loss to Huawei and other Chinese OEMs acts as a material governor on iPhone unit growth.”
Vogt, who has a Neutral rating and $190 price target on Apple, also pointed out that iPhone units in the U.S. were down 16% year-over-year in a market that was down roughly 10%, indicating the iPhone lost share in the U.S. as well.
Indian iPhone units also fell roughly 7% year-over-year, as the market declined 7% year-over-year, Vogt said.
Conversely, iPhone units in Europe rose 19.5% year-over-year, albeit in a market that rose 21%, Vogt added.