Milunovich predicts that in the current financial year of Apple Corp., its iPhone sales growth in China will remain roughly flat. This is because the time period for the upgrading of consumers has become longer, and the competitive pressure from local Chinese smart phone manufacturers is increasing. Big.
'We believe that China (iPhone sales) is difficult to return to the peak level in 2015 because local brands have caught up and the replacement cycle is lengthening.' Milunovic wrote in a customer report released on Monday. Although experts in the industry have seen aggressive (consumer) buying patterns, the overall market has started to slow down, because the market is getting saturated and the cycle of upgrading is getting longer. Our experts also agree that the upgrade cycle has been It will grow longer from 2017 and will also continue to grow in 2018.
The analyst said that Apple’s sales in the Chinese market had peaked in 2015, when iPhone’s Chinese shipments accounted for 25% of total shipments, compared with the current decline. To 19%.
'We expect the market to show a flat trend, which may increase or decrease by several percentage points, depending on the overall market conditions and the product cycle. 'He wrote in the report. 'Pressure from local competitors will continue to exist.' They have become good at copying new features quickly.
Although Apple has faced growth problems in the Chinese market, the analyst reiterated its 'Buy' rating and a target price of $190. He pointed out that in the current financial year of Apple, the price-earnings ratio of its stock At 16 times, it has an advantage over other technology hardware companies.