JPMorgan Mentions Apple (AAPL) Positively: 'China iPhone Demand Accelerating and Better Than Industry'

JPMorgan analyst Samik Chatterjee reiterated an Overweight rating and $200.00 price target on Apple (NASDAQ: AAPL)

The analyst comments "China Academy of Information and Communications Technology (CAICT) released June smartphone data, which comprised international (Apple) shipments at 3.5 mn units for the month of June, above the historical average of 2.3 mn shipments for the month of June. Shipments in June were down -17% m/m, but still better than seasonal downtick of -52% m/m from May to June. Higher than seasonal shipments further offset the weakness in international shipments seen in Feb-Apr period. Looking at the larger picture, International shipments for the iPhone 13 cycle have tracked at 44.1 mn, +17% higher than the shipments over same period in prior cycle, and the strength has accelerated from +11% y/y growth as of May, and reached close to +18% levels seen in Feb-22. For the quarter ending in June, International shipments increased +24% y/y. Overall shipments growth for the industry tracked higher than seasonal as well, as total mobile phone shipments increased +35% m/m from May to June (see Figure 1 and Figure 2 on Page 2) vs. an average seasonal downtick of -4% m/m and increased +9% on y/y basis. 5G shipments for the month of June were quite robust at 23 mn units, representing 82% of the total shipments. Second consecutive month of better than seasonal shipments, with positive y/y growth for the first time since December, could be an early sign of pickup in demand in China, however, as some of the demand could be due to reopening of lockdowns, it is worth monitoring y/y growth into next months to confirm on demand recovery. For International shipments, market share stood at 13% vs. 6% historically in June, clearly indicating better demand scenario for Apple relative to other players in smartphone industry."

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Shares of Apple closed at $151.00 yesterday.

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