Revise down overall units. 1Q smartphones units were below our 8-Mar update, -14% QoQ to 314mn vs our 344mn units, impacted by the Russia-Ukraine conflict, China’s zeroCovid policy, and rising inflation on consumer demand. We lower our 2022E units to 1.283bn, -5.6% YoY (vs previous 1.419bn, +4.4% YoY), to reflect the weak 1Q22 performance and full-year units held back by rising BOM costs and sluggish consumer demand amid macro pressure from rising inflation and evolutionary spec upgrades.

1Q22 5G tracked in-line, 2022-23E lowered to 660mn/850mn. 5G units were more resilient and in line with CSe 1Q22 at 155.5mn, with China 5mn light at 59mn and RoW ahead by 6mn at 97mn, supported by the iPhone SE refresh adding 5G connectivity. We still lower 2022/23E 5G from 707mn/900mn units to 660mn/850mn units, reflecting lower market volumes, impact of China weakness also already at 80% of units on 5G, and deferred push to emerging markets on inflation pressure and carrier rollouts for 2023-24.