“After two sluggish years, UBS expects sales in the Chinese market to rebound sharply and drive a global increase in sales of the iconic smartphone,” Nolter reports. “‘How the iPhone fares in China is the swing factor regarding our forecast for 15% unit growth in [fiscal year 2018],’ UBS analyst Steven Milunovich wrote. Though unit sales in China have dropped 20% in each of the past two years, the analyst expects a 30% improvement there this fiscal year.”
“‘China has been about the only place Apple has been losing share,’ Milunovich wrote,” Nolter reports. “The elements for a rebound are in place, the analyst suggests. About 40 million users will have iPhones that are at least two years old… ‘”Consumer buying patterns support higher-priced phones, and the installed base is older than ever,’ Milunovich wrote regarding Apple’s potential for a break-out fiscal year 2018.”
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MacDailyNews Take: Get ready for the turbo-charged supercycle!