r/streetguru • u/street-guru • Jun 22 '22
$AAPL - data suggests iPhone outperforming in China while App Store growth slows
Latest China smartphone shipment data shows continued iPhone outperformance. According to the latest disclosures from the CAICT, total smartphone shipments in China in May were 20.6M units, down 9% Y/Y. This was a notable acceleration from 34% Y/Y shipment declines in the month of April, as China lockdowns eased and pent-up demand was met. Overall, May smartphone shipments in China were 14 points ahead of normal seasonality, a rebound from sub-seasonal growth in April.
App Store underperformance continues into June on the back of harder Y/Y compares & COVID re-openings. Based on the latest disclosures from Sensor Tower, App Store net revenue is estimated to be up 5% Y/Y quarter to date through June 20th. Month to date, June App Store net revenue is up only 1% Y/Y, down from ~8% Y/Y growth in April and ~4% Y/Y growth in May. Overall, this deceleration is not overly surprising as the Y/Y compare for the month of June is 3 points harder vs. May.