Why China Could Be the Key to 5G’s “ Super Cycle ” Upgrade

GUANGZHOU, CHINA – The iPhone 12 lineup with 5G connectivity will be very important in China and key to achieving what analysts call a “supercycle” upgrade.

5G refers to next-generation mobile networks that promise ultra-fast data speeds.

On Tuesday, Apple unveiled four new iPhone models with 5G technology. While 5G networks are in their infancy, China’s networks have been rapidly pushing to expand coverage.

This has led to an increase in sales of 5G smartphones, especially from domestic players like Huawei.

Apple is now joining the party, which is a big step up in a market that accounts for around 15% of the US tech giant’s total sales.

“If we look at the (second quarter) of the year, nearly half of the smartphones shipped in China have 5G connectivity,” IDC Research Director Will Wong told CNBC. “Among the top 5 sellers in China, Apple is the only one that does not own the 5G model. Getting a 5G upgrade will be very important for Apple to continue to attract the attention of the Chinese market.”

China is the world’s largest 5G smartphone market and the country with the most 5G connections, according to market analysis firm CCS Insight.

China remains a major component of Apple’s recipe for success as we estimate that approximately 20% of iPhone upgrades will come from this region over the next year.

Daniel Ives

Wedbush Stock Brokerage

It appears that the second largest economy in the world has managed to control Corona virus, and There are signs of an economic recovery And a Revive consumer spending.

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“In the era of the pandemic, in terms of recovery, the economy, and also from the epidemic itself, China is outperforming other regions and countries, so it is important for Apple to stay ahead and upgrade 5G connectivity,” Wong said.

Daniel Ives, an analyst at Wedbush Securities, said Chinese demand is “the cornerstone of Apple’s 5G super cycle”.

Ives said in a note on Tuesday: “China remains a key component of Apple’s recipe for success, as we estimate that approximately 20% of iPhone upgrades will come from this region over the next year.”

“Up to this point, we are seeing significant strength from the China region over the past few months (should be a source of relative strength in the September quarter) with positive trends heading towards the very important holiday time frame.”

Apple’s iPhone 11 series and cheaper 2nd generation iPhone SE proved popular with Chinese consumers and helped the Cupertino-based company We see a pickup in sales in the second quarter After a difficult first quarter.

What iPhone will Chinese consumers buy?

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