In a note to investors seen by AppleInsider, Morgan Stanley analysts said that in MayiPhoneGrowth rebounded to +14% Y/Y. The company said this happened at a time of “blockade easing”, with the addition of smartcell phoneIB (Introducing Intermediary) increased its share in China for 21 consecutive months.
Looking at the monthly App Store, though, Morgan Stanley estimates only 1% growth so far in June. That compares to 6% growth for the entire May of 2022.
Morgan Stanley didn’t look at the reasons for the decline in App Store growth, which appears to run counter to the increase in iPhone sales. One possible reason for the App Store’s slowdown, though, is China’s requirement for regulators to approve new games.
In addition, China is also restricting the issuance of licenses to game companies. In addition to this, recent restrictions have also placed limits on the amount of time children can play games.
“According to the latest disclosure from [Chinese authorities] CAICT, total smartphone shipments in China in May were 20.6 million units, down 9% year-on-year,” Morgan Stanley analysts said. “This is a clear acceleration, down from 34% y/y shipments in April, as China’s lockdown eases and pent-up demand is met.”
“Our estimates suggest that iPhone shipments in China were 4.2 million units in May, up 14% year-on-year,” they continued, “while shipments from domestic Chinese smartphone suppliers fell 13% year-on-year, suggesting that 5 The share of the iPhone increased in the month.”
Notably, the company reported that during May 2022, 11.8% ofappleusers switch toHuaweimobile phones, but 24.6% of Huawei users switched to Apple. Note that Huawei has a smaller market share than Apple, so the percentages are not comparable.
Comparable is BP, or basis point, a financial term used to give some comparisons between different companies. “Apple’s retention rate increased by 66bps (month-on-month) in May, which is still well above its historical average,” the company said.
Morgan Stanley also has news about Apple’s supply chain. It reported that the easing of China’s lockdown has affected Apple retail stores and Mac andiPadproduction is helpful.
“We believe the gradual lifting of COVID-related restrictions in China in recent weeks has helped Apple’s Mac and iPad production,” the analyst said. Our Mac lead time tracker shows that as of June 16,MacBookDelivery time for the Pro M1 was 56 days, down 6 days from the previous week’s record of ~62 days. “
The company attributed the shorter lead times, at least in part, to better production utilization. The same is true now, with all Apple Stores in the region open and accepting orders.
“While lead times are still 2 months, this drop is likely a sign of improving supply,” the analysts continued. “A similar trend is seen for Mac Studio releases in March 2022.”