03:04 PM EST, 12/02/2024 (MT Newswires) -- Apple ( AAPL ) users outside of China are more interested in the iPhone's cost and privacy features than they are in the smartphone's generative artificial intelligence capabilities, UBS said in a note Monday.

The firm said its survey of over 7,500 smartphone users in the US, UK, China, Germany, and Japan pointed to soft iPhone demand as AI interest remained muted.

The survey found that only one-third of users outside of China indicated they were interested in a smartphone with GenAI, while a similar number of users said they were not interested in such capabilities, and the rest remained indifferent, UBS said.

The survey also found that the 12-month global iPhone purchase intent fell by 200 basis points year over year in China to 17%, while remaining flat in the US at 24%.

Despite the muted demand, the firm said it was raising its calendar year 2024 and calendar year 2025 global smartphone sell-in estimates to 1.21 billion and 1.24 billion units, respectively, from 1.20 billion and 1.22 billion units.

The firm also initiated its calendar year 2026 sell-in estimates at 1.25 billion units.

UBS has a neutral rating on the stock with a $236 price target.

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