Apple Inc to See Weaker iPhone Sales in December, Says UBS
UBS analysts have predicted weaker sales of Apple’s flagship iPhone in December, citing persistent concerns over slowing demand and falling market share in China. The brokerage has cut its iPhone unit and revenue estimates for the month, attributing a 2% negative revision in its December quarter revenue estimates to the decline.
According to Counterpoint Research data, iPhone sell-through declined 8% year-on-year in November to 20.7 million units, with China accounting for a significant portion of this decline. The iPhone’s global share also sank to 20.1%, its lowest level since November 2019.
UBS notes that October and November usually account for a bulk of Apple’s iPhone sales in the December quarter, and the decline in November could have a negative impact on the company. The brokerage estimates iPhone revenue to decline 5% year-on-year in the December quarter, missing both its estimate and the street estimate of implied positive growth highlighted by the company during its September quarter earnings report.
Apple has been grappling with years of slowing device sales, with a bulk of these declines being driven by weakening demand in China and heightened competition from local players such as Huawei and Xiaomi. The inclusion of artificial intelligence features in its flagship iPhone 16 models did little to stimulate sales, and the company is yet to roll out any AI features in China due to regulatory hurdles. However, Apple’s services revenue remains robust, driven by strong AppStore sales and demand for its software offerings, which is expected to limit overall declines in earnings.