Huawei Shipments Surpass iPhone in July, New Data Reveals

Recent data from Bernstein indicates that Huawei surpassed the iPhone in smartphone shipments in China for July 2024.

According to the firm’s analysis, total smartphone shipments in China increased by 14% year-over-year (YoY), with Huawei accounting for a remarkable 67% of that growth, contributing to nearly half of the overall rise.

In contrast, iPhone shipments reportedly declined by 9%, following a spike in demand during May and June, when Apple had offered appealing discounts. Non-Huawei Android smartphones also experienced an 11% increase, signifying a broader recovery across the Android market.

Bernstein noted that while Huawei’s rapid YoY growth appears impressive, it comes against a relatively low base, and its shipments have shown limited sequential growth in recent months. The decline in iPhone shipments implies that the demand boost from the prior months has diminished.

For the year-to-date (YTD), Bernstein reports that smartphone sell-through in China has increased by 9%. Huawei leads the charge with a 68% rise, while Apple has seen a 7% decrease and other brands have grown by 3%. This 9% YTD increase surpasses Bernstein’s original projection of 7%. However, analysts remain cautious, as shipments in the latter half of 2023 were already high, and comparisons for 2024 will be made against a stronger base.

A noteworthy trend observed in July is the ongoing shift toward high-end smartphones, particularly outside the Apple and Huawei brands. This shift may be influenced by advances in artificial intelligence (AI), potentially benefiting companies like MediaTek, Qualcomm, and Arm, the latter of which is experiencing increased royalty rates due to the wider adoption of v9 technology in premium smartphones.

Despite ongoing concerns about iPhone inventories in China, Bernstein does not consider this a significant problem for investors. They pointed out that Apple has indicated that global channel inventories were at the lower end of historical levels by the end of the June quarter, indicating that channel inventory is not a concern for investors.