China Hardware_ China Smartphone Dec-24_FY24 Sell-in Shipments +20.8%_+6.5% YoY

Summary of the Conference Call Transcript Industry Overview - Industry: China Smartphone Market - Date: February 14, 2025 Key Points 1. Sell-in Shipments Growth: - December 2024 saw a 20.8% year-over-year increase in sell-in shipments, totaling 32.4 million units. - Full-year 2024 shipments reached 294 million units, reflecting a 6.5% year-over-year growth [1][1][1]. 2. Quarterly Performance: - Fourth quarter 2024 shipments were 88.5 million units, marking a 4.3% year-over-year increase. - Monthly sell-in shipments improved by 15% month-over-month from November 2024 [1][1][1]. 3. Sell-out Shipments: - Total sell-out shipments for FY24 were approximately 274 million units, indicating a 1% year-over-year increase, suggesting inventory build-up by the end of 2024 [1][1][1]. 4. Factors Driving Sales: - The month-over-month and quarter-over-quarter improvements in sales are attributed to: - Restocking for new model launches and early Chinese New Year effects. - City-level and provincial handset subsidies announced. - Resilient sales from domestic brands, which offset disappointing iPhone sales in China [1][1][1]. 5. Impact of National Subsidies: - National subsidies are believed to help digest inventories, aligning with component checks conducted [1][1][1]. 6. Outlook for January 2025: - Anticipated decline in January sell-in shipments both month-over-month and year-over-year due to the Chinese New Year impact and high comparison base [1][1][1]. 7. Positive Outlook for 2025: - The outlook for the China smartphone market in 2025 is positive, driven by continued strength in restocking, supported by handset subsidies and advancements in AI and specifications [1][1][1]. Additional Insights - Market Dynamics: The report highlights the competitive landscape, emphasizing the resilience of domestic brands in the face of challenges posed by international competitors like Apple [1][1][1]. - Inventory Management: The analysis suggests that inventory management strategies will be crucial in navigating the anticipated fluctuations in demand during the early months of 2025 [1][1][1]. This summary encapsulates the essential insights from the conference call regarding the current state and future outlook of the China smartphone market.