“We believe the momentum at the China-based brands is increasingly impacting Samsung, while Apple has already been struggling over the past 12-18 months. In the near term, we sensed disappointment around demand for the iPhone 5s,” White wrote.
He continued, “That said, we heard great enthusiasm around the potential for Apple to introduce a larger iPhone form factor in China this year with the iPhone 6. In our view, the iPhone 6 with a larger screen (e.g., 4.7-inch, 5.5-inch) has the potential to meaningfully accelerate Apple’s growth trajectory in China during 2H:14. We have not heard this type of excitement in China around the iPhone in at least two years and thus we believe this could be a very special iPhone launch for Apple.”