“With Apple marking the 10th anniversary of the iPhone this week, one of the looming questions for CEO Tim Cook is whether the company can revive sales in China,” Chris Nolter reports for TheStreet.
“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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