Apple’s risk from Huawei’s phones looks ‘overstated’ – analyst

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Evercore ISI analyst Amit Daryanani wrote in a research note Monday that Apple investors should not worry about Huawei phones impacting iPhone sales.

Angela Palumbo for Barron’s:
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According to Counterpoint Research, Huawei achieved high sales growth during [China’s Singles Day annual shopping event], which is always held Nov. 11, while unit sales of Apple products declined from a year earlier.

“The report has added to investor concerns around Huawei risk, but we continue to think this risk is overstated,” Evercore ISI analyst Amit Daryanani wrote in a research note Monday. Daryanani rates Apple at Outperform with a target of $210 for the stock price.

Daryanani said that Huawei’s stronger performance during the Singles Day sales event was partially due to the fact that the Chinese phone maker offered more aggressive price cuts than Apple. Apple also continues to face constraints on the supply of its phones. Daryanani believes the decline in unit sales was “more a function of limited supply vs. any meaningful share loss.”

“Looking at unit numbers, Apple has only 15% share in China in the most recent quarter, but they earned ~37% of market revenue,” Daryanani added. And while Huawei offers lower-end smartphones, Apple concentrates on the higher end of the market. “These buyers tend to be less price sensitive and more loyal, so we continue to think Apple can maintain its share despite Huawei becoming more competitive,” the analyst said.

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MacDailyNews Take: Huawei’s overhyped claim to fame is the Mate 60 with a “Kirin 9000s” chip that’s generations behind Apple. The Kirin 9000s is a 7nm chip that has a Single-Core Score of 1267 and a Multi-Core Score of 3533 in Geekbench 6 benchmarks. Apple’s A17 Pro is a 3nm chip that has a Single-Core Score of 2902 and a Multi-Core Score of 7221 in Geekbench 6 benchmarks.

It’s not even close. It’s a 2019 Toyota Yaris vs. a 2023 Bugatti Chiron Super Sport sort of affair. It’d be a joke if it weren’t so sad.

Huawei’s flagship phone, the Mate 60, is trounced by Apple’s entry-level iPhone SE (third generation) which offers the 5nm A15 Bionic launched in September 2021 (Single-Core Score: 2237, Multi-Core Score: 5173 in Geekbench 6 benchmarks).

Plus, Huawei’s crap is hobbled with HarmonyOS and likely wide open to CCP surveillance.

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