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Many capital market analysts have recently predicted that in 2016 Apple is going to see its first iPhone sales decline in years, the speculation has already impacted Apple’s share price significantly, and makes investors cautious about the long-term profitability of Apple’s cash cow. However a major investment bank thinks otherwise, Bank of America Merrill Lynch has found little merit in concerns about iPhone sales decline.

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A major chunk of the company’s revenues and profits comes from iPhone sales so it’s easy to see why investors might be concerned if sales are declining. It also doesn’t expect sales in China to drop soon as the market appears to be very much in love with the iPhone for now.

Bank of America Merrill Lynch conducted a survey which showed that Apple is currently the most popular brand in China that was used by 24 percent of those who responded to the survey, more than 1,000 respondents took part in this.

The survey found that 39 percent of all responders expected to purchase an iPhone as their next device whereas 81 percent of existing iPhone owners were planning to stick with their current device. Around 32 percent of non-iPhone users expressed their interest to switch over to Apple.

Over the past few quarters sales in China have contributed significantly to overall sales figures for the iPhone, a decline in the People’s Republic will most certainly be felt, but if this survey is any indication of the broader market sentiment, for now, it looks like it’s smooth sailing for the iPhone.

Filed in Cellphones. Read more about . Source: bloomberg

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