03:48 PM EDT, 05/09/2024 (MT Newswires) -- Apple's ( AAPL ) iPhone shipments to China increased by 12% in March, UBS Securities said in a note emailed Thursday.

"On Apple's ( AAPL ) most recent earnings call, one of the biggest surprises was the disclosure that iPhone revenue increased YoY in the March quarter despite data that suggested 'sell-through' was down high-teens for the quarter," UBS said.

UBS highlighted that Apple's ( AAPL ) revenue recognition policies, recognizing revenue upon shipment, partially explain the "surprise" between shipment and sell-through data. In March, Apple ( AAPL ) shipments in China rose by 12% year-over-year, while sell-through declined by 13%. Additionally, Apple ( AAPL ) reduced iPhone channel inventory during the quarter, particularly in March.

"In China, we estimate sell-through was a just few hundred thousand above sell-in, modestly reducing channel inventory in that market," UBS added.

UBS has a neutral rating on Apple ( AAPL ) with a 12-month price target of $190.

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