iPhone (AAPL) Share Ramp in China Continues, Stifel Notes

Stifel analyst Aaron Rakers reiterated a Buy rating and $150 price target on Apple (NASDAQ: AAPL) after new data showed the iPhone share ramp in China continues.

Rakers commented, "Over the weekend (4/4) Kantar Worldpanel reported on smartphone sales share data for the three months ending February 2015. While the data illustrates what we would consider a typical post product cycle decline Apple’s (AAPL, Buy, $125.32) U.S. smartphone share (38.8% vs. 42.8% for the three months ending January 2015), we believe the most notable takeaway is the implied continued share ramp for Apple in China. According to the Kantar Worldpanel ComTech data, Apple’s iOS share increased to 27.6% for the three months ending February 2015, an increase from 21.5% and 25.4% for the three month periods ending December and January. This also represents an increase from 17.9% for the same period ending February 2014. Gartner estimates Apple’ iPhone shipments totaled 13.4 million (+89% yr/yr) in Mainland China during C4Q14, representing 12.7% total shipment share (estimated at ~20 million units for Greater China). Kantar Worldpanel data shows a total Android share at 70.9% in China for the three months ending February 2015, a decline from 80.4%, 77.0%, and 72.8% in for the trailing 3-month periods ending November, December, and January, respectively."

In addition, the analyst notes U.S. mobile phone imports from China rose 27% year-over-year. "US imports of mobile phones from China were up 24% yr/yr in February, which compares to +21%, +25%, and +29% yr/yr in November, December, and January. Combined January + February mobile telephone imports are up 27% yr/yr; combined January + February imports have accounted for ~66% of total 1Q imports on average since 2008 (range: 62%-69%). U.S. mobile phone imports have been highly correlated with Apple’s estimated US iPhone sales (R2 = 0.95)."

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $125.32 yesterday.

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