Well-connected analyst Ming-Chi Kuo, formerly of KGI Securities, released a new set of predictions on Tuesday related to Apple and its products.
Kuo, who now works at TF Securities International, detailed quite a few aspects of Apple’s 2018 and 2019 product lineups in a new research note. But aside from the products, Kuo also made a few predictions about the larger picture for Apple.
U.S.-China Trade War & Apple
In the midst of a brewing trade war between the U.S. and China, Kuo downplayed the impact it could have on the Cupertino tech giant.
“We believe it is unlikely that Apple will be directly impacted by the trade war because it plays an important role in both China and US economy,” Kuo wrote.
The analyst added that it is worth “monitoring” whether consumers in China will reject Apple products on the basis of “anti-American” sentiments.
How Apple Can Grow
It’s no secret that Apple faces stiffer competition by the day, from all ends of the tech industry.
But Kuo notes that in the premium-tier market, “Apple’s real competitor is itself.”
The analyst goes on to suggest that fact “implies that (Apple) needs to offer new models that appeal to consumers to boost replacement demands.”
“We attribute the iPhone’s slow growth in recent years to there being no significant replacement demands boosted by new models after the iPhone 6,” Kuo wrote.
How Apple Can Continue to Innovate
Kuo is seemingly still upbeat about Apple’s ability to innovate in the coming years.
“We believe that Apple is still the leading company in the consumer electronics sector,” Kuo wrote in Tuesday’s research note.
He added that Apple has “has surpassed its competitors by a wide margin in terms of innovative user experience and ecosystem development.”
Lastly, he added that Apple’s “leading advantages” may come from new applications and platforms, such as augmented reality. Though Kuo didn’t expand on the specifics of such platforms.
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