Apple Will Never Reach the Same iPhone Sales Glory It Did in 2015, Claims UBS Analyst
It was the year 2014 and Apple had finally switched to increasing the screen size of its iPhone, with the introduction of the iPhone 6 and iPhone 6 Plus. This was followed up with the iPhone 6s and iPhone 6s Plus which featured far better internals and addressed several complaints that plagued the phone family announced back in 2014.
However, fast forward to 2018 and we have a slew of Chinese smartphone players ranging from Xiaomi, Vivo, Huawei, OPPO and others that are trying to become a living nightmare for Apple in China, the largest smartphone market in the world. According to a UBS analyst, Apple will not be able to repeat the dominating iPhone sales run it did back in 2015, and that is due to several reasons which we’ll soon find out.
Apple to Experience Overwhelming iPhone Competition in China as More Competitors Are Present and Consumers Are Waiting Longer to Upgrade
UBS analyst Steven Milunovich is having doubts that Apple’s iPhone lineup is not going to be performing at the same pace that it did back in 2015.
“We think it’s doubtful China returns to its 2015 peak as local brands have caught up and upgrade cycles are lengthening. Although industry experts see aspirational buying patterns, the market as a whole has begun to slow due to saturation and lengthening upgrade cycles. Our experts agreed that upgrade cycles started to lengthen in 2017 and will continue to do so in 2018.”
The tech giant’s competitors are already coming up with solutions that are cheaper, leaving a very high percentage of consumers to choose this rather than picking up an expensive iPhone. However, it should be noted that Apple still commands the refurbished smartphone market, so it not appears to be slow down in other categories.
Even though iPhone sales growth in China might not be what it used to, Milunovich is still keeping his buy recommendation on Apple. His target on the stock is $190, which would be an 8 percent gain from today’s close of $175.82.