Global smartphone shipments rose more than 6.5% in the second quarter, led by Samsung Electronics and Apple (AAPL), according to a Reuters report on Monday, citing preliminary data from IDC.
Despite these positive aspects, a full recovery in demand has not yet arrived, Reuters adds, stressing that it still remains difficult in some markets.
The publication said the research firm showed global shipments increased for the fourth consecutive quarter as smartphone makers hope artificial intelligence will attract price-conscious consumers and capture a larger market share.
Analysts from IDC’s Worldwide Tracker team told the publication that there was “a lot of enthusiasm” in the smartphone market, while “many major Chinese manufacturers are increasing shipments at the low end to try to capture volume share amid weak demand.”
They added that “Apple and Samsung both continue to position themselves at the top of the market and are the ones benefiting most from the current premiumization trend.”
Apple (NASDAQ:) shares opened more than 2% higher on Monday after Morgan Stanley analysts upgraded it to a Top Pick and raised its price target to $273 from $216.
Morgan Stanley has reinforced its bullish view on the stock, with its analysts now convinced that the introduction of Apple Intelligence and its limited backward compatibility could trigger a multi-year refresh cycle for Apple devices.
“What we underestimated before, and what the market is still underestimating today, is how significant the impending upgrade cycle could be,” the investment bank said.
Their analysis of Apple’s evolving iPhone base, upgrade rates, new user growth, and model mix suggests that Apple is on track to ship nearly 500 million iPhones over the next two years, or 235 million in fiscal 2025 and 262 million in fiscal 2026.
“While historically we have expected annual iPhone shipments of 230 million to 240 million in a strong cycle, these factors suggest that annual shipments could reach 260 million to 290 million units, significantly higher than the 230 million to 235 million iPhone shipments that the market is currently pricing in each of the next two years,” the bank added.