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Chinese demand for iPhone 7 slowing in 2017: UBS report

By Liu Zheng | chinadaily.com.cn | Updated: 2016-11-02 13:36

Chinese demand for iPhone 7 slowing in 2017: UBS report

A customer tries out an iPhone 7 smartphone at an Apple Store in Qingdao, Shandong province, Sept 16?2016. [Photo/IC]

Apple Inc's largest overseas market is exhibiting signs of softness in fiscal year 2017, and customers are showing lower interest in the 7 series than the previous generations of iPhones, according to CNBC reports on Tuesday, citing notes from UBS analyst.

Based on the financial service provider's latest Evidence Lab Global Smartphone Survey of almost 6,500 consumers, Steven Milunovich, an industrial analyst of UBS AG told investors that Chinese interest in the iPhone 7 is waning.

Chinese demand for iPhone 7 slowing in 2017: UBS report

IPhone 7, 7 Plus are introduced on Sept 8, 2016 at Apple's products launch event held in San Francisco, California. [Photo by Liu Zheng/chinadaily.com.cn]

According to the report, Milunovich reiterated its buy rating on Apple shares due to its attractive valuation and strength in US demand.

He also reckoned that global smartphone penetration of 60 percent and high aspirations in the US and China mean that Apple could win new customers, and although Samsung's retention rate has improved, 30 percent of its customers were at least somewhat less likely to go with Samsung.

Competition for the iPhone in China tends to come from lower price domestic brands with localized android and improved features.

According to research firm Counterpoint Technology Market Research, the market share of iPhones in China slipped to 8.4 percent, lagging behind local vendors Huawei, Oppo and Vivo, which have won over customers with similar features at lower prices.

"The iPhone 7 series should help Apple regain lost (Chinese) market share as demand is tracking better than for the iPhone 6s series," said Counterpoint analyst Neil Shah. "(But) Apple needs to offer something cutting-edge to appeal to maturing Chinese smartphone users who are warming to local brands."

 

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