Fall In Chinese Market Not Concerning For iPhone Sales, Says Cantor Fitzgerald

Brian White, Cantor Fitzgerald analyst, released a note to clients on Monday in which he reiterated his Buy rating on Apple Inc. AAPL with a price target of $195.

White was on CNBC Monday to discuss if the recent fall in Chinese stocks will have any impact on sales of the iPhone in the country.

Apple's Target Audience In China

In discussing the demographic of iPhone buyers in China and whether those are the same people that would have been hit the hardest by the fall in the Chinese equity markets, White said those hit hardest were urbanites. "So, I think definitely in the big cities and I think you are starting to see it even in some of the second and third tier cities."

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He continued, "So, I think, at first it was the wealthy people in Beijing, Shanghai and Shenzhen, and now I think it's a broadening out across China. So, just remember Apple had about a 8 percent market share a year ago in China according to IDC. This last quarter it was just under 15 percent and they are the number one in China right now."

Not Concerned

White was asked if he is concerned about slowing sales of the iPhone in China due to the recent stock market meltdown. He replied, "I am not concerned."

"I think we are in a very early stage, as Tim Cook talked about of this iPhone cycle – 20 percent of the installed base have upgraded. And so, this is a multi-year event. Why is that? A bigger iPhone and for China, it's also the fact that China Mobile is now in full force with Apple in the 4G network's building out.

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