Apple Inc. (AAPL) got a boost this week after Barclays came out with new research that shows that 35% of those gearing up to buy a new smartphone will purchase the iPhone X.

Barclays analyst Mark Moskowitz polled around 1,000 consumers located in the U.S., UK, China, and Germany and found that 62% plan to purchase a new smartphone during the next year, with 72% planning on acting in the next year and a half. Of those that will upgrade, 54% said they would purchase an Apple iPhone with 35% signaling they would choose the iPhone X. With a starting price tag of $999, that bodes well for Apple and its profits and margins.  (See also: Why Apple Could Reach $1 Trillion Next Year.)

Wooing Chinese Buyers

The analyst noted in the research report, which was covered by 9To5Mac, that interest in the iPhone X is higher now—now that it has been in the marketplace for about a month—than when Apple was accepting preorders or even before it was launched. In August, Barclays found 18% of those upgrading their smartphone would purchase the iPhone X. Barclays expects Apple to have average selling prices of $823 on the iPhone X, which is a record. The analyst also said that of those that are switching to an iPhone, 37% are coming from China, an extremely important market for Apple to regain its luster in. (See also: Apple Scrambles to Fix Major Security Flaw.)

Barclays isn’t the only Wall Street watcher that is upbeat about the iPhone prospects. Last week, Morgan Stanley analyst Katy Huberty, citing Jigaung, a Chinese company that gathers data from push messaging, said the data shows the Cupertino, Calif., tech company increased its number of active users in China with it rising 19.5% as of November. That compares to Chinese phone makers who saw a 14% uptick in their active user base. The data from Jigaung also shows that in the four weeks that ended Oct. 22, more consumers left their Chinese branded smartphones for an iPhone than iPhone users left for a Chinese-brand handset. Apple’s switching rate increase to 7.6% from 6.7% in the year-ago October time frame. The analyst said the number of iPhones in China that can be upgraded is 56% higher than in 2015 when the iPhone 7 was launched. As a result, she thinks China could represent 74 million iPhone units in fiscal 2018, which is a lot higher than the 41 million unit sales in China for the fiscal year ended in September. Huberty has an overweight rating on Apple and a $200 price target. Recently shares of Apple were trading at $170.93, up $1.13 or 0.67%.

 

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