Apple Inc. (AAPL)’s iPhone Dominance In China To Continue Even Despit Xiaomi Threat: David Garrity

Apple Inc. (NASDAQ:AAPL) momentum on iPhone sales is set to continue this year especially in China according David Garrity of GV Research, who refutes suggestions that iPhone 6 received massive airplay because of the holiday season. During An interview on CNBC, Garrity reiterated that iPhone sales momentum will continue this year, at the back of China’s Luna New Year on February 19 where the device is to be bought in plenty as a gift.

AAPL Apple Store

IPhone’s have soared in popularity as products of choice given as gifts by people in China, something that Garrity believes should have an impact on momentum in terms of unit sales this year.

“[…] And also what it says about Apple Inc. (NASDAQ:AAPL) more importantly is that even though other manufacturers have had larger screen sizes on their phones whether Xiaomi or Samsung to the extent that Apple is now in with a phone that is as large if not slightly larger. Certainly there is a great deal of pumped up demand for Apple we expect this momentum to continue going into the counter first quarter 2015 for Apple,” said Mr. Garrity.

Garrity maintains Apple Inc. (NASDAQ:AAPL) does not need to start paying attention to Xiaomi, which has been making news in the recent past as it continues to gain market share in the smartphones arena. Xiaomi through its pricing strategy focuses on the low-end markets, which Garrity believes does not in any way affect Apple on the high-end.

Apple should on the other hand start being aggressive towards Xiaomi when its starts to make a push for market share on the international front according to Garrity. The price point for iPhone’s continues to be a major point of concern as people continue to ask for how long Apple Inc. (NASDAQ:AAPL) will be able to sustain the high price tags. The fact that people are still buying the phones at the high price points continues to give Apple more confidence as brand loyalty and aspirations also continue to gain momentum in China.

“Apple has more room to run; we are still in a position here where if you go back and look at Apple Inc. (NASDAQ:AAPL)’s partnership with the largest mobile network operator in China, China Mobile. […] We still think that there is still a great to be done in terms of filling the channel with China Mobile,” said Mr. Garrity.

Garrity also expects Apple Watch to expand iPhone appeal factor while partnership with International Business Machines Corp. (NYSE:IBM) on the enterprise to expand the company’s presence in the service offering front.

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks
Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.