iPhone sales in China are booming, according to the latest research note from UBS analyst Timothy Arcuri.
Investors worried that strained tensions between China and the US would cause some backlash against Apple’s brand in China, but that does appear to be the case based on the latest data from the government.
iPhone demand was up 230% in September 2019 compared to 110% growth during September 2018. The iPhone 7 could be a big reason why demand is up. The three generations old device is currently the most popular model among active iPhones in the country leaving many users ready to upgrade.
In the UBS investors note obtained by Ped30, Arcuri lists three factors that contributed to the strong iPhone demand: iPhone 7, cheaper price-point on the base model and a better trade-in program from Apple.
China quickly became Apple’s second-most important market for iPhone sales. However, the company has been struggling to gain ground on the competition. Apple is currently the fifth most popular smartphone maker in China.
Apple shares have been on a big upward swing ever since the iPhone 11 and iPhone 11 Pro went on sale last month. The company’s valuation topped $1 trillion again last week, making Apple worth more than ever before.