Apple Inc.ās emerging threat in China could be a blast from the past.
Thank you for reading this post, don't forget to subscribe!BofA Securities analyst Wamsi Mohan is curious about whether Huawei could put a dent in Appleās
AAPL,
China momentum as it enjoys a technological rebound.
Apple has been able to gain smartphone share at the expense of Huawei in recent years, according to Mohan, thanks to sanctions that prohibited U.S. companies from selling software and equipment to it. But Huaweiās new Mate 60Ā and Mate 60 ProĀ phones sport an in-house chip āthat seems to perform at 5G-comparable speeds,ā which could help the company regain traction.
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āIfĀ Huawei has the capability to supply and scale its home-grownĀ Kirin 9000S, we seeĀ the Mate-series phoneĀ as an opportunity for Huawei to increase its shipments and regain its market share, potentially posingĀ downside risk to iPhone sales, especially in the Asia Pacific,ā Mohan wrote.
He added that Huawei āhas historically been a national favorite in China.ā
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By Mohanās math, Apple earns just over 1 cent a share for every million iPhones that it sells. If Huawei claws back 10 million units of share, that would translate to a roughly 11-cent-per-share impact to fiscal 2024 earnings, he noted.
āIf Apple were to lose the [30 million] units gained since the sanctions began, weĀ couldĀ see aĀ farĀ greaterĀ impact ofĀ $0.34,ā Mohan said, while reiterating a neutral rating and $210 price objective on the shares.
Apple is due to make its own smartphone launch next week, as the consumer-electronics giant will debut its iPhone 15 family of devices at a Sept. 12 event.