China iPhone’s discounts are ‘more generous’ than those on Android models: Jefferies By Investing.com



China’s smartphone volume continued to grow year-over-year following the 618 promotions, driven by generous discounts, Jefferies said in a Sunday note.

Citing industry checks, Jefferies analysts said smartphone volume fell by low double digits sequentially but still posted high single-digit year-over-year growth. This growth was driven by high single-digit gains in Android and Huawei (HW) devices and low double-digit gains in iPhone sales. Notably, iPhone sales continued to outpace Android and HW during the 618 period.

“Our industry checks suggest that, YTD, China’s smartphone market grew 3%+ YoY, driven by HSD growth in Android+HW, but LDD decline in iPhone,” analysts wrote.

“iPhone has regained some ground in the past month driven by more generous discounts,” they added.

Jefferies estimates that Huawei has been the biggest market share gainer year-over-year so far in 2024, while OPPO has lost the most share. iPhone’s market share has only declined slightly, by less than one percentage point, year-over-year.

Jefferies’ analysis also showed that iPhone discounts last week remained largely similar to those during the 618 promotions on JD (NASDAQ:) and PDD platforms. However, there was an increase in discounts specifically for the iPhone 15 and 15+ on JD, Suning, and PDD.

For Android and Huawei devices, discounts generally retreated after 618. Nevertheless, PDD continued to offer significant discounts on the five Android and HW flagship models that Jefferies monitors. Outside of PDD, most platforms have reduced their discounts following the 618 sales event.

“Therefore, iPhone’s discounts are mostly more generous than those on Android+HW flagship models,” analysts continued.

“That may explain iPhone’s continued outperformance against Android+HW. We see that as a strong sign that all smartphone makers are very keen to defend market share at the high end, and high-end models usually have higher GM, which means room for discounting.





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