Apple’s (AAPL) iPhone shipments to China increased by 12% in March, UBS Securities said in a note emailed Thursday.
“On Apple’s most recent earnings call, one of the biggest surprises was the disclosure that iPhone revenue increased YoY in the March quarter despite data that suggested ‘sell-through’ was down high-teens for the quarter,” UBS said.
UBS highlighted that Apple’s revenue recognition policies, recognizing revenue upon shipment, partially explain the “surprise” between shipment and sell-through data. In March, Apple shipments in China rose by 12% year-over-year, while sell-through declined by 13%. Additionally, Apple reduced iPhone channel inventory during the quarter, particularly in March.
“In China, we estimate sell-through was a just few hundred thousand above sell-in, modestly reducing channel inventory in that market,” UBS added.
UBS has a neutral rating on Apple with a 12-month price target of $190.