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The used smartphone market is much larger than investors think, and one analyst says this gives Apple (NASDAQ: AAPL) the opportunity to particularly expand its place share in the market in the coming countries.
Morgan Stanley analyst Katy Huberty says that because used Apple iPhones expand their addressable global market through 65% through commercial programs, their share in upcoming market locations may be proportional to their global market percentage through 2023.
Earlier this year, IDC market researchers predicted that smartphone volumes would fall by 2.2% international in 2020, and that was before the coronavirus pandemic. But they also said that sales of used smartphones would increase to 13.6% annually until 2023, reaching 332.9 million units, basically because the costs of new smartphones exceeded $1,000, a trend that Apple started in 2017 with the iPhone X.
Huberty said investors miscalculate the duration of the used smartphone market because the ability of iPhone buyers to manufacture a used device is much greater before reaching a saturation point, allowing Apple to increase its percentage in emerging markets.
Canalys data means that the smartphone market plummeted by 14% in the last quarter of this year due to the pandemic, but Apple is the only manufacturer to revel in growth, sending 45.1 million iPhones worldwide, a 25% increase that took its share of place in the global market. 15.8%.
This can mean a large adoption of iPhones in emerging markets, as generation inventory has noticed that its percentage of all smartphone sales stagnates in some countries, such as India, at 1%. This may only be partly the explanation for the launch of the reasonable iPhone SE this spring with a value of $399.
Despite the expected increase in market share, Huberty maintained his obesity score in Apple’s inventory with a $431 worth tag, about 7% below where it is last traded.