Market Overview

UBS Says 'It's China, China, China' For Apple

UBS Says 'It's China, China, China' For Apple
Related AAPL
Verizon's Wireless Segment Facing Pressure While Wireline Shows Promise
Technical Alert: Apple Trading In Very Narrow Range
Alibaba Pulls Out All the Stops For Singles Day Shopping Festival (Investor's Business Daily)

UBS Analyst Steve Milunovich recently came out with a note in which he wrote that Apple Inc. (NASDAQ: AAPL) "has somewhat botched the Watch introduction." Milunovich was on CNBC Monday to explain why he thinks so and to share the highlights of a latest survey done by UBS on Apple.

'China, China, China'

"A few weeks ago, we talked about some hiccups in terms of the Apple Watch introduction and we have lowered our numbers about a week ago to 31 million from 40 million for next year," Milunovich said.

Related Link: Apple Topples Competition, Becomes The Largest Smartphone Vendor In China

"But today's report is really a global smartphone survey that we have done. It's almost 9,000 consumers in 6 countries around the world. So, it's probably the largest survey I have ever seen on Wall Street at least, and it's finding that Apple continues to be extremely strong."

He continued, "The stickiness is very clear, and it's China, China, China. We are finding that Apple's retention rate is very strong in China, and we are also finding that actually Apple Watch interest is highest in China relative to the other 5 countries that we surveyed."

The Watch Will Be A Moderate Success

Milunovich was asked how much weight the Apple Watch has in UBS's price target of $150 for Apple. He replied, "I think the watch is a little bit of it. Frankly, with relatively flat iPhone shipments next year, the watch will move the numbers a little bit.

"We are looking for about 7 percent of the installed base to buy a watch. I think it will be moderately successful for now," Milunovich concluded.

Image Credit: Public Domain

Latest Ratings for AAPL

Oct 2016Credit SuisseMaintainsOutperform
Oct 2016UBSMaintainsBuy
Oct 2016Goldman SachsMaintainsBuy

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: Apple Watch China iPhoneAnalyst Color CNBC Analyst Ratings Tech Media


Related Articles (AAPL)

View Comments and Join the Discussion!