“CEO Tim Cook once envisioned China as Apple’s next big market, set to eclipse even the U.S. in revenue,” Roger Fingas reports for AppleInsider. ” That dream has taken a raincheck in the past two years, with iPhone units down 8 to 11 percent — and Apple is unlkely to bounce back, an analyst suggested in a memo obtained by AppleInsider.”

“Wall Street analysts were previously looking for a 15 to 60 percent unit recovery in Apple’s fiscal 2018, but several obstacles are now in the way, said UBS’s Steven Milunovich,” Fingas reports. “Apple’s primary iPhone market — the high end, above 4,000 yuan — is claimed to be ‘fairly saturated’ in China, even though it consists of about 200 million to 300 million people.”

“Even then Apple is facing stiff competition from local giant Huawei, and increasingly long customer upgrade cycles,” Fingas reports. “Chinese iPhone sales will likely remain flat, with relatively little long-term growth, Milunovich predicted. Non-local smartphones — mostly from Apple —saw their shipments decline 16 percent in the March quarter, according to government data.”

Read more in the full article here.

MacDailyNews Take: If only we had a nickel for every erroneous analyst prediction, supposition, or exposition.

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