In a note Thursday, UBS analysts said iPhone sell-through declined year over year in April, with global units dropping approximately 2%.
The tech giant is "not out of the woods yet," stated UBS.
Analysts explain that the decrease highlights continued pressure in the two largest smartphone markets, the US and China, as per the analysis of April smartphone sell-through data from Counterpoint Research.
UBS said that in April 2024, global iPhone sell-through was estimated at 14.8 million units, down from 15.1 million units in April 2023. This made it the smallest April month since April 2020, during the peak of the COVID-19 pandemic.
iPhone units saw a significant decline of nearly 20% in China, 4% in the US, and 8% in India, although there was a 22.5% increase in Europe due to a favorable comparison base.
In addition, the bank says the decline in iPhone market share was also notable, with global share dropping by 130 basis points year-over-year to approximately 16%, marking the fourth consecutive month of share loss.
In China, the iPhone's market share fell by 390 basis points to 14.5%, as Huawei's share increased by 450 basis points. In the US, iPhone's share decreased by 110 basis points to about 49%, while Samsung (KS:005930)'s share rose by 560 basis points. Meanwhile, the iPhone share in Europe saw a slight increase of 30 basis points to 23.4%, and in India, it decreased by 30 basis points to around 5%.
UBS maintains a price target of $190 for Apple (NASDAQ:AAPL), reflecting what analysts believe is "a challenging growth backdrop, higher rates, and undefined AI strategy."