Apple To Benefit As China's 3G Subscribers Break Through The Half-Billion Mark

On Tuesday, Brian White of Cantor Fitzgerald wrote a note to clients stating that China's 3G subscriber pas has risen 33 percent year over year in September. The total number of 3G subscribers now total more than half a billion users, mostly driven by Apple Inc.'s AAPL iPhone devices.

“We believe consumers in China have enthusiastically embraced the arrival of larger iPhones with the iPhone 6 and iPhone 6 Plus, while we expect the 4G ramp in the country to reach an inflection point in 2015,” White wrote in his research note. The analyst adds that Apple's position in China “has never been better.”

Total subscribers in China (wirelines, wireless and broadband) rose 3.99 million to 1.682 billion in September. Aggregate wireless subscribers grew 4.64 million, reaching 1.278 billion.

Within the next five years, White expects 15 percent to 20 percent of all mobile subscribers in China will be potential buyers of a higher-end smartphone. Apple's share of the smartphone market at that time, according to the analyst, could represent $123 billion to $164 billion in sales.

Apple's continued growth in China makes the company “one of the most attractive stores” among large-cap tech stocks, according to White. The analyst adds that shares are attractive trading at “just” 11 time (ex-cash) calendar 2015 earnings per share projections.

Shares are Buy rated with a $143 price target.