Cantor's Brian White Says China Is 'Still Where The Money Is' For Apple

Selling smartphones in China is "still where the money is" for Apple Inc. (NASDAQ: AAPL), an analyst said Tuesday.

Cantor Fitzgerald's Brian J. White sees a revenue opportunity for Apple over the next five years in China of between $133 billion and $178 billion as mobile subscribers there increasingly switch to smartphones.

Analysts on average expect Apple to post 2016 revenue of $231.88 billion.

The China smartphone market contracted by 4 percent in the first quarter to 98.8 million units shipped, according to a report last month from IDC.

But White pointed to the same report, noting that Apple overtook rival Xiaomi as market leader in China for the first time.

Apple's first quarter market share in China jumped to 14.7 percent, from 8.7 percent a year ago.

Xiaomi slipped to the second position because of competition in the low to mid-range segment of the market, IDC said.

Apple is "better positioned than ever to benefit from a major upgrade cycle across the country," according to White, who maintains a Buy rating and $196 target on the company.

Within five years, between 15 percent and 20 percent of China's wireless subscribers could become candidates for smartphones, according to White.

Apple traded recently at $127.29, down $0.32. Shares are nearly unchanged in the past three months.