Morgan Stanley: It’s springtime for Apple in China

According to analyst Katy Huberty, Apple’s share of China’s smartphone installed base grew more in March than any other brand.

From a note to clients that landed in my inbox Friday.

According to data from Jiguang, a firm that aggregates smartphone data from its push-messaging services in China, Apple’s share of the Chinese smartphone installed base grew ~300bps Y/Y in March, greater than any other smartphone brand in China, and the largest Y/Y increase for the iPhone in the last 15 months (1).

This marks the third consecutive month of Y/Y share gains in China, a noticeable reversal from December quarter performance, where Apple lost share for three consecutive months. Similarly, Apple was the only top 3 smartphone vendor in China to gain installed base share M/M in March, a reversal from March 2018, when Apple lost share while most other smartphone brands in China gained share (2).

As of March quarter-end, Apple had 20.9% smartphone installed base share in China, closing the gap for #1 market share vs. Huawei by 190bps M/M.

Maintains Overweight rating and $220 price target. 

Exhibit 1:

Exhibit 2:

morgan stanley china iphone

Click to enlarge.

My take: Huberty, who does good work, has been on a roll, first that big Heathcare survey, then a strong showing on Squawk Alley, now this.

CORRECTION: An earlier version of this story mistook basis points for percentage points. Rookie mistake.

See also:

4 Comments

  1. Jonathan Mackenzie said:

    300 basis points is 3%, not 300%…

    1
    April 12, 2019

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