<News Alert> 4Q23 global smartphone shipments rebounded 8.5%, ahead of expectations
- Global smartphone shipments rebounded 8.5% y-o-y in 4Q23, ahead of IDC’s forecast, mainly driven by robust sales of iPhone and Xiaomi 14 and Transsion’s strong performance
- iPhone shipments increased 11.6% y-o-y, slightly above market expectations, clinching the top spot for the first time
- Expect momentum to continue in 1H24 and emerging Apple suppliers to benefit. Reiterate BUY calls on Luxshare (TP: RMB55), BYDE (TP: HK$48), Xiaomi (TP:HK$21)
Smartphone shipments increased 8.5%, with iPhone at 11.6%, ahead of expectations.
IDC announced yesterday that global smartphone shipments rebounded 8.5% y-o-y in 4Q23, vs. -0.1% in 3Q23, ahead of IDC’s forecast of 7.3% y-o-y. The resurgence was mainly driven by (1) the robust sales of the iPhone 15 series, (2) significant growth from Xiaomi’s latest flagship (Xiaomi 14) offerings, and (3) the strong performance of low-end android players like Transsion in emerging markets. iPhone shipments increased 11.6% y-o-y to 80.5m units in 4Q23, slightly above market expectations. It clinched the top spot on an annual basis for the first time ever, despite the sluggishness in China. Its strong performance was due to the increasing trend of premium devices, which now represent over 20% of the market. Meanwhile, Xiaomi’s and Transsion’s shipments increased 22.7% y-o-y and 68.6% y-o-y, respectively, in 4Q23.
Expect growth momentum to continue in 1H24; emerging Apple suppliers to benefit.
We expect market sentiment along the smartphone supply chain to improve, as global smartphone and iPhone shipments were ahead of expectations. We foresee the smartphone premiumisation trend, incorporation of innovative specifications like AI features, along with Huawei’s return to the premium phone market as key drivers of the growth of global shipments in 1H24. Smartphone vendors like Apple and Xiaomi, which are adopting a premiumisation strategy, are going to benefit from the recovery of shipments and the increasing penetration of premium phones. We also expect Apple to sustain its growth trajectory and maintain its market share in 2024, propelled by its increasing penetration in emerging markets like India. We also anticipate the sustained revival of smartphone shipments to escalate demand along the supply chain. Component suppliers with growing iPhone exposure, like BYDE and Luxshare, are expected to capitalise on the iPhone’s growth momentum.