Bernstein's latest Apple tracking report reveals a 2% year-over-year increase in iPhone shipments for May, with market share expanding in the US, Japan, and emerging markets. However, revenue from the China region fell by 15.5% year-over-year, attributed to reduced promotional intensity during the 618 shopping festival and changes in subsidy thresholds. The average selling price (ASP) of iPhones decreased by 1.2% year-over-year, ending a six-month growth streak, as the e series sales share rose to 11%, impacting the overall average price. Despite these challenges, Bernstein maintains an Outperform rating for Apple, setting a target price of $350. The report also highlights a 27% year-over-year increase in iPhone DRAM content to 9.6GB, with 8GB+ models making up 95% of sales. While TSMC's N3P shipments were affected by weak iPhone 17e sales and reduced 618 discounts, the growing demand for AI is expected to compensate for this shortfall.