Market Overview

iPhone Comeback? Morgan Stanley Talks Apple's Chinese Growth

Share:
iPhone Comeback? Morgan Stanley Talks Apple's Chinese Growth

Apple Inc. (NASDAQ: AAPL) saw gains in iPhone use in March for a third straight month in China, marking a turnaround from late last year, when the brand was losing share in the country, according to Morgan Stanley. 

The Analyst

Katy Huberty has an Overweight rating on Apple with a $220 price target.

The Thesis

Year-over-year growth in the “installed base,” or the number of iPhones in use in China, in March was the best it has been in 15 months, Huberty said in a Friday note, citing data from Jiguang, a firm that aggregates smartphone data in China.

The year-over-year increase in March was a noted change from last year, when Apple reported at the end of its December quarter that the iPhone lost share in China for three straight months, the analyst said.

The new data showed Apple was the only one of the top smartphone vendors in China to see an installed base share gain in March versus February.

As of the end of the March quarter, iPhone’s share of the installed base in China was just under 21 percent, and it closed the gap with Huawei for top market share by 190 basis points, Huberty said. 

The suggestion of a possible rebound for Apple in China would be welcome news, as others have expressed fears in recent months that the ongoing trade war between the U.S. and China could continue to hamper sales, according to Morgan Stanley. 

Price Action

Apple shares were down 1.28 percent at $196.40 at the time of publication Friday. 

Related Links:

Rosenblatt Cuts iPhone Shipment Estimates On China Weakness

Analyst Says Apple's App Store Spending Is Likely To Slow In 2019

Photo courtesy of Apple. 

Latest Ratings for AAPL

DateFirmActionFromTo
Dec 2019MaintainsOutperform
Dec 2019Initiates Coverage OnBuy
Dec 2019MaintainsOverweight

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings

Posted-In: China iPhoneAnalyst Color Emerging Markets Price Target Reiteration Markets Analyst Ratings Best of Benzinga

 

Related Articles (AAPL)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
AMRXRaymond JamesDowngrades
MDStifelUpgrades33.0
CATStandpoint ResearchDowngrades
LULUPiperJaffrayMaintains245.0
LULUWells FargoMaintains260.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Goldman Adds EXACT Sciences To Americas Conviction List

Freightos' WebCargo Acquires India-Based Air Freight Bazaar