Apple Inc. (NASDAQ:AAPL) hasn’t been knocking it out of the park in Asia with sales of the iPhone X, but one analyst notes that may not be the case with new products that are set to hit the market later this year. As such, Rosenblatt Securities’ Jun Zhang views it as a wash.
CNBC passes along Zhang’s assessment of Apple’s struggles and expected rebound in Asia.
Apple’s iPhone X may not have wooed Asian consumers during the Lunar New Year holiday — but the company has some new products in the pipeline, according to Rosenblatt Securities’ Jun Zhang.
Zhang chopped 5.5 million units off expectations for iPhone X sales for the first half of this year in a Wednesday research note. But with sales of high-end smartphones shrinking, Apple could offset lower iPhone sales with new products.
Zhang notes that the firm sees a similar market developing for Samsung’s S9 model, and he adds that high-end smartphone upgrade cycles are extending as far as consumers are concerned. However, he points out that a lower-priced model could just inspire more consumers to check out newer models.
“Since we expect the overall smartphone market to be flat this year, particularly in the mid-to-high end markets,” he wrote. “Apple’s upcoming lower priced iPhone model could drive Apple’s unit growth.”
Apple Inc. shares were trading at $176.92 per share on Thursday afternoon, up $1.89 (+1.08%). Year-to-date, AAPL has gained 4.97%, versus a 2.48% rise in the benchmark S&P 500 index during the same period.