Apple investors should be fretting over Japan, not China

“Apple could see its market share in Japan fall by around 20 percent over time with ‘trouble brewing’ in its highest margin country, UBS said in a note on Tuesday,” Arjun Kharpal reports for CNBC. “While investors focus on Apple’srecent struggles in China, UBS suggests that a number of regulatory and competitive factors in Japan – which accounts for around 8 percent of the iPhone maker’s revenue – could be a cause for concern.”

There is some trouble brewing, though, that we believe could affect Apple’s growth. First, Japanese carriers are no longer as aggressively using discounts on handsets to lure subscribers from other carriers, which could affect phone sales. Second, our industry contacts indicate that while the Apple brand remains strong, cheaper alternatives are making inroads with Apple’s share potentially declining over time from 50 percent to 30 percent. — UBS analysts, Steven Milunovich and Benjamin Wilson

“Japan is a crucial market for Apple,” Kharpal reports. “In the U.S. technology giant’s fiscal second quarter, it posted a 24 percent year-over-year rise in revenues while every other region saw declines. It is also the market in which it commands the highest margin on its iPhones.”

Read more in the full article here.

MacDailyNews Take: The hits just keep on coming.

4 Comments

  1. So that’s the cause cause for alarm? iPhone sales in Japan are strong, but cheaper phones are on the way. Additionally discounts from carriers are no longer on offer.

    When has there ever been a time when cheaper alternatives are not available? Discounts from carriers are vanishing in many countries, yet iPhones remain strong sellers.

    None of that sounds like much of a reason to fret.

  2. Apple investors fret over everything and that’s why the share price is in the toilet. Apple has become the imperfect company where nothing they do is of any use in increasing the company’s value.

    Tim Cook and the rest of Apple’s management team have run out of ideas to increase company revenue. One would think they only have to follow what other companies are doing to add value. Whatever. Apple stock isn’t going to see any gains and I’ll just have to get used to it. Everything happening in the world today affects Apple negatively and maybe it’s beyond anyone’s power to stop.

  3. What a pathetic life you must have, One Note Doofus Joe. What do you do the rest of the time, when not here regurgitating the same crap over and over?
    What it is, please go away and do more of it.

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