Jefferies shares cautious outlook on Apple and Xiaomi smartphone demand

Published 17/07/2025, 17:48
© Reuters.

Investing.com - Global smartphone shipments grew by 1-2% in the second quarter of 2025, according to data from Counterpoint Research and IDC, slightly outpacing Jefferies’ flat growth estimate.

Samsung (KS:005930) led major manufacturers with approximately 8% year-over-year growth, driven by strong performance from its mid-range models. Apple (NASDAQ:AAPL)’s iPhone shipments increased by 1.5-4%, below Jefferies’ 8% estimate, despite strong sales during China’s 618 shopping festival where iPhone volume grew 19% year-over-year. The tech giant, currently valued at $3.15 trillion, maintained steady revenue growth of 4.91% over the last twelve months. InvestingPro analysis shows Apple trading near its Fair Value, with investors eagerly awaiting the company’s earnings report on July 31.

Xiaomi (OTC:XIACF) recorded flat smartphone growth globally, suggesting slower expansion outside China where the company experienced approximately 7% growth. Jefferies’ second-quarter revenue and operating profit forecasts for Xiaomi are now 2.4% and 12% below consensus, respectively.

Memory costs are creating additional pressure on smartphone manufacturers, with DDR4 prices rising in the second quarter and expected to increase another 10-15% in the third quarter and 10-25% in the fourth quarter. DDR5 and NAND prices are projected to rise 2-4% in the third quarter.

Jefferies maintains a cautious outlook for the second half of 2025, citing weak demand, rising memory costs, and high finished goods inventories at approximately 49 days industry-wide, with some brands holding around 100 days of inventory in Southeast Asia and India.

In other recent news, Apple has committed $500 million to MP Materials to purchase American-made rare earth magnets and establish a new recycling facility in California. This partnership aims to strengthen the domestic supply of rare earth materials and advance recycling innovation. Additionally, Apple is expected to adopt Samsung Display’s crease-free display solution for its foldable iPhone, slated for mass production in the second half of 2026, according to TF International Securities analyst Ming-Chi Kuo. The decision will benefit suppliers like Fine M-Tec, which will begin shipping components in early 2026.

Apple’s market share in China stood at 13.9% in the second quarter of 2025, as reported by the International Data Corporation. Globally, Apple ranked second in smartphone shipments with 46.4 million units, capturing a 15.7% market share, according to IDC data. Furthermore, Apple TV+ achieved a record 81 Emmy nominations, with "Severance" leading with 27 nominations. The streaming service became the only network to secure multiple nominations in both the Outstanding Comedy and Drama Series categories.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.