Apple More Likely to Recover From China COVID Shock Than Android
- Published: 9th June 2022, 07:16
Apple has better prospects than Android considering supply chains after China’s latest COVID measures, Credit Suisse wrote in a report, cited by CNBC. Shanghai started reopening on June 1 after about sixty days of lockdown, ordered to bring a COVID surge under control.
Credit Suisse analyst Edmond Huang and his team stated in the report:
Overall production of hardware could gradually resume to normal levels in June/July, with a brighter outlook for Apple’s supply chain than Android, while semiconductor would see more demand problems than supply. Our checks suggested the iPhone 14 build schedule remains the same, but initial production will be smaller which may be because of certain model production delays or some parts/chips shortage. We think the overall production orders of new models will stay similar to last year but the final production volume may vary on supply disruption.
Greater China accounts for just under a fifth of Apple sales
Greater China and Hong Kong comprise 19% of Apple’s sales. At the end of April, the tech giant reported almost all of its final assembly facilities in Shanghai had restarted production. They added that the most recent lockdown in Shanghai would inflict losses of as much as $8 billion on sales in the current quarter, commenting that another factor was related to the ongoing chip supply crisis.
If you’re curious, you can check how much it cost to buy an Apple device in your country by checking our currency transfers comparison tool, check some examples below:
Outlook for Apple ‘better than expected’, Android is more focused on China
iPhone supplier Foxconn said the effect of the lockdown wasn’t as bad as anticipated and Apple’s prognosis for 2022 was ‘better than what was expected’ at the start of the year.
As much as four-fifths of Android’s production capacity is in east China, mainly Shanghai and Suzhou in Jiangsu province, and the Greater Bay Area, the Bank of America wrote in a report. Both Credit Suisse and the Bank of America said plummeting domestic demand for smartphones and their dependence on the China market were the biggest problems for Android suppliers.
China market consistently underperforming
Smartphone shipments in China were down 18% y/y in the first quarter of 2022 according to niche expert Canalys, compared to a worldwide decline of 11%. Canalys also pointed out that the Chinese market has been underperforming for more than two years.
Vivo and Oppo’s shipments dropped by 34% and 44%, respectively, while Apple maintained 17% y/y growth in mainland China shipments for the first quarter of 2022. Huawei spinoff Honor’s shipments tripled y/y in this period.
Buy a device from abroad
In some cases, people buy tech devices from other countries because it is cheaper. For example, many people who are traveling to the US from Spain, buy an iPhone there as it is cheaper due to the currency exchange. For that reason, many people convert euros to USD. If you would like to buy a tech device such as an Apple device or an Android phone from another country, we suggest you choose the best money transfer provider. In the table below you can see some of the best options, make sure you compare the different providers to select the best one for you:
|Ranking||Provider||Exchange Rates & Transfer Speed||Get Started|
|🥇||Wise||Exchange rates: 0 – 0.5%|
Speed: 1 – 2 days
|🥈||Xe||Exchange rates: 0.4 – 1.2%|
Speed: 1 – 4 days
|🥉||Instarem||Exchange rates: 0 – 0.5%|
Speed: 0 – 5 days
|#4||WorldRemit||Exchange rates: 0.5 – 1.25%|
Speed: 2 – 3 days
|#5||TorFX||Exchange rates: 1 – 3%|
Speed: 1 – 3 days