China could become a $150 billion market for Apple in the next few years, Daniel Ives, senior technology analyst at FBR Capital Markets told CNBC's "Squawk Alley." The firm also expects China to surpass the United States and become Apple's top market by fiscal year 2017.
At present, Wall Street is only modeling in $70 billion in Chinese revenues, but FBR sees the iPhone continuing to take a larger share of the smartphone market, a trend the firm believes will lead to uptake of other products in Apple's ecosystem.
At present, Apple controls about 15 percent of the Chinese iPhone market, Ives said, but the company can grow its slice of the pie significantly. In a research note, he said Apple had grown Chinese revenue from less than $1 billion in 2009 to about $30 billion last year.
"This is really a land grab opportunity for Apple. It's what they do the best, and that's really why this is the next step for the Apple story," he told "Squawk Alley." "We could talk about the developer conference, larger iPads, everything we expect. China is key to an Apple stock going higher."
Disclaimer: Steve Milunovich owns shares of Apple. UBS does not hold greater than a 1 percent share of the stock, but provides investment and non-investment banking services to the company and makes a market in the security. Neither Daniel Ives nor his family own shares of Apple. FBR Capital Markets holds a greater than 1 percent stake in the stock. It does not provide investment banking services to the company
At present, Wall Street is only modeling in $70 billion in Chinese revenues, but FBR sees the iPhone continuing to take a larger share of the smartphone market, a trend the firm believes will lead to uptake of other products in Apple's ecosystem.
At present, Apple controls about 15 percent of the Chinese iPhone market, Ives said, but the company can grow its slice of the pie significantly. In a research note, he said Apple had grown Chinese revenue from less than $1 billion in 2009 to about $30 billion last year.
"This is really a land grab opportunity for Apple. It's what they do the best, and that's really why this is the next step for the Apple story," he told "Squawk Alley." "We could talk about the developer conference, larger iPads, everything we expect. China is key to an Apple stock going higher."
Disclaimer: Steve Milunovich owns shares of Apple. UBS does not hold greater than a 1 percent share of the stock, but provides investment and non-investment banking services to the company and makes a market in the security. Neither Daniel Ives nor his family own shares of Apple. FBR Capital Markets holds a greater than 1 percent stake in the stock. It does not provide investment banking services to the company
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