China data increases concerns around iPhone units, says JPMorgan

JPMorgan says concerns around Apple’s iPhone units in the China market increased with data from CAICT for the month of February showing that iPhone shipments declined sharply at 33% year-over-year and 56% month-to-month to track at 2.4M units in the month. The decline in February puts the year-to-date decline for iPhone units at down 37% year-over-year in China, the analyst tells investors in a research note. The firm says the data points to a digestion in the broader market in relation to sell-in volumes on account of higher inventory in the channel. While an analysis of the data limits concerns around iPhone share relative to domestic players like Huawei, it does raise concerns about the sustainability of the sequential recovery for the China market that was evidenced through 2023, says JPMorgan. The firm has an Overweight rating on Apple.