Credit Suisse: iPhone Shipments Down Over 35% in China

Apple China flag

iPhone shipments in China last month were down 35.4% compared to November last year, according to a note by Credit Suisse analysts. The note, published Thursday said shipments China since the iPhone 11 launch were down 7.4% year-on-year (via CNBC).

Apple China flag

China Sales and Trade War Cause Concern, Say Credit Suisse

Furthermore, the Credit Suisse analysts said October Chinese iPhone sales declined 10.3% year-on-year. This meant that Apple suffered two consecutive months of doubt-digit percentage declines in sales in the country. “We estimate China iPhone revenue fell by >17.5% y/y over the past three months (Sept-Nov),” they wrote.

Not surprisingly, the analysts cited the ongoing trade war between the U.S. and China as another cause for concern. The potential 15% tariff, set to be brought in on December 15, could cause a $70 per unit price increase in the U.S. The Credit Suisse note said:

Our (and we believe investors’) base case continues to factor in a favorable resolution (i.e., no tariffs); however, we think Apple would have a difficult time pushing through tariff-related price increases to U.S. consumers (~35% of CY18 iPhone units, per Gartner) without a commensurate impact on demand.

Apple’s stock price fell slightly on Thursday morning. At the time of this writing, a share cost $270.10. That’s a drop of 0.25%.

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