According to a report released by Credit Suisse, China's smart phone shipments in June increased by 14% year-on-year, but decreased by 17% month-on-month. This data is lower than the sales forecast for the first time this year, indicating that inventory levels are high. iPhone shipments decreased by 43% month-on-month, possibly due to high inventory levels. Based on sales in the past six months, the bank predicts that the Android supply chain will outperform the iPhone supply chain in the third quarter.

The bank mentioned that iPhone 16 production will start in August. However, Apple's (AAPL.us) production target for the second half of the year is 89 million units, while the target for iPhone 15 in the same period last year was 88 million, which means that there will not be much annual growth in the preparation of iPhone 16 parts. If the production volume of iPhone 14 and 15 continues to decline in the next two months, the growth of Apple's supply chain in the third quarter may be lower than expected. On the contrary, the Android supply chain is expected to be better in the third quarter, as its inventory is lower, coupled with slowed growth in the second quarter and healthy sales growth.