UBS: Apple looks strong in China ahead of earnings

UBS analyst Timothy Arcuri upped his price target on Apple shares to $275 from $230 today on higher demand for iPhone ahead of Apple’s earnings report Tuesday.

Emily Bary for MarketWatch:

Arcuri said that third-data points look encouraging in China and suggest that Apple showed better seasonal strength there in September than it did a year ago. “More importantly, there has been growth in two of the last three months following declines for two and a half years,” he wrote.

In general, Arcuri sees iPhone 11 estimates as being too low, writing that despite the lack of high-profile new features, Apple looks well positioned to drive upgrades given a relatively high portion of iPhone 7 and iPhone 7+ devices that are still in use.

“Build plans for 2019 iPhones have been muted, but recent data suggests a slight uptick given higher demand,” he wrote.

MacDailyNews Note: Apple will report Q419 earnings on Wednesday, October 30th. As usual, we will have the results here right around 4:30pm Eastern and, following that, live notes for Apple’s conference call beginning at 5pm Eastern.


  1. I have to admit things are looking up for Apple shareholders. I honestly thought iPhone sales had reached a saturation point and that Android smartphones would simply just keep gaining more and more market share because of how cheap they were. I figured it already got to the point where it didn’t matter what features Apple added, it wouldn’t make a difference to consumers who were simply going to purchase cheaper smartphones from whatever company sold them. Maybe I was wrong. There may be an upper limit in price, but consumers won’t necessarily purchase the cheapest smartphones they can find. There’s likely a sweet spot that Apple needs to stay within to continue getting repeat iPhone sales. Obviously, in India and Africa there’s not much Apple can do if consumers can only afford $200 smartphones. I don’t have an answer for that. It’s likely a total loss of sales for Apple unless they can sell older, refurbished iPhones to millions of poverty-level consumers.

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