Equity Analyst, LightStream Research

Farha Sabri

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Bottom-Up

<ul>
<li>The Chinese smartphone market, which commands approximately 30.0% of the global smartphone market, experienced declining sales in 4Q2018. The Chinese smartphone market fell by 9.7% YoY in 4QFY2018 .</li>
<li>Meanwhile, the global smartphone market fell by 4.9% YoY in the same quarter as a result of conditions in China, longer replacement cycles and a lack of technological innovations in the industry.</li>
<li>Apple continued to suffer with iPhone shipments to China falling by 20.3% YoY during the last quarter.</li>
<li>5G compatible phones are likely to turn around industry performance, however, the introduction of such devices will most likely occur in the latter half of 2019. Apple, in question is rumoured to release their 5G compatible iPhone in 2020, later than close competitor Samsung.</li>
<li>Slow market conditions are likely to prevail until the next generation of communication technology becomes commercialised. Until such a time, companies such as Apple, and parts suppliers to smartphone vendors may continue to struggle with slowing performance similar to that of present. However, over the long term, companies stand to benefit once 5G is released in spite of the short term outlook not being too favourable.</li>
</ul>


The Chinese smartphone market, which commands approximately 30.0% of the global smartphone market, experienced declining sales in 4Q2018. The Chinese smartphone market fell by 9.7% YoY in 4QFY2018 .
Meanwhile, the global smartphone market fell by 4.9% YoY in the same quarter as a result of conditions in China, longer replacement cycles and a lack of technological innovations in the industry.
Apple continued to suffer with iPhone shipments to China falling by 20.3% YoY during the last quarter.
5G compatible phones are likely to turn around industry performance, however, the introduction of such devices will most likely occur in the latter half of 2019. Apple, in question is rumoured to release their 5G compatible iPhone in 2020, later than close competitor Samsung.
Slow market conditions are likely to prevail until the next generation of communication technology becomes commercialised. Until such a time, companies such as Apple, and parts suppliers to smartphone vendors may continue to struggle with slowing performance similar to that of present. However, over the long term, companies stand to benefit once 5G is released in spite of the short term outlook not being too favourable.


Apple Shipments to China Fall as Local Phone Makers Eat Up Market Share