Jefferies says market talk of double-digit iPhone growth may be ‘too aggressive’

Jefferies China Technology analysts led by Edison Lee note that the global smartphone market started recovering in late Q3 of 2023, driven in China by Huawei’s release of Mate 60 for sale, but they contend that “the honeymoon period for smartphone recovery may be over for now.” While they believe iPhone 16 will sell well given healthy high-end demand and share gain potential in emerging markets, the China Tech team argues that hardware innovations in the 16 are still limited and its AI capabilities are “only at its initial stage and available mainly” in the U.S., so market talks of double-digit growth are “likely too aggressive.” Recent supply chain checks indicate “moderate” to “not much” growth year-over-year, the Jefferies China Technology team added.