Morgan Stanley analyst Katy Huberty noted that Apple's 12% iPhone shipment growth in China last quarter was the company's second largest sequential share gain in China. According to smartphone data aggregating firm Jiguang, iPhone's overall active smartphone user share downticked in China in early January from recent highs, though iPhone X share gains accelerated in China during the month, Huberty tells investors. While acknowledging that iPhone is not seeing the "supercycle" she previously expected, Huberty still sees 4% total iPhone unit growth to 226M units estimated in FY18 and believes accelerating adoption of the highest end iPhone in China, the world's largest smartphone market, can drive active smartphone market share gains, she said. Huberty has an Overweight rating and $203 price target on Apple shares.

Apple saw sales of its iPhones fall 19.1% in the first three months of the year, CNBC's Ryan Browne reports, citing data from Counterpoint Research. Meanwhile, Huawei saw a 69.7% surge in smartphone sales in the country during the same period, Counterpoint said. Reference Link