Apple Inc (NASDAQ:AAPL, ETR:APC)'s global iPhone sales were down 1% year-over-year in February amid muted demand in its three key markets, according to an analysis by UBS analysts.
Apple continues to lose market share in these regions – China, Europe and the US – despite modest growth in India and other emerging markets, the analysts highlighted.
In China, iPhone sales fell 17% year-over-year in February, outpacing the overall smartphone market's 10% decline and reducing Apple's market share to 13.4%.
Europe saw a similar trend, with iPhone sales down 12% compared to the broader market's 6.6% decline, bringing Apple's market share to 27.1%.
In contrast, US iPhone sales dropped only 1%, but the company still gained market share, reaching 50.2%, as the overall US smartphone market shrank 5%.
Growth in India and other regions partially offset these declines, with iPhone sales increasing around 20% year-over-year, although this growth came off relatively weak comparisons from the previous year.
However, the newly launched iPhone SE saw lackluster initial sales, with an estimated 300,000 units sold in its first month, far below the 700,000 units sold by the SE 2022 and the 2.4 million units of the SE 2020.
The analysts estimate global iPhone sell-through was down approximately 1% compared to a 20 basis points decline for the market. This translates to Apple holding a 17.7% share of the market, compared to 17.8% in February 2024 and 20.2% in February 2023.
UBS has a ‘Buy’ rating and $236 price target on Apple, which they noted reflects a lower equity risk premium, lower interest rates, and longer-term growth given the company’s share buyback authorization.
Shares of Apple traded hands at about $222 on Tuesday afternoon.