Apple's iPhone has officially been dethroned from its position as the smartphone market share leader in China, according to a Monday report from Jefferies analysts.
But Apple's iPhone has seen a significant, double-digit decline, and its volume growth year over year has been negative since the iPhone 15 launched, according to the analysts.
"We believe weak demand in China would eventually lead to lower-than-expected global shipments of iPhone 15 in 2023," the analysts wrote, adding that the trend suggests the iPhone will "lose" to Huawei next year.
The analysts noted that resale iPhone 15 devices are all "trading at discounts to official selling prices," which also reflects the weak demand in China.
The Morgan Stanley analysts said they will be watching Apple's total revenue, services revenue growth, gross margin and revenue growth in China from its September quarter, but that the December quarter guide "is what will matter most."
Persons:
Tim Cook, Morgan Stanley, Apple, Michael Bloom
Organizations:
Apple, Jefferies, Huawei, Xiaomi
Locations:
Cupertino , California, China