Apple may have dampened down expectations when it released the last set of quarterly financial figures, and predicted revenues down again year-on-year for the current quarter, but at least one analyst disagrees.
Ton Sacconaghi, Wall Street analyst at Bernstein, predicts Apple shares moving up to $125 based on his calculations of the impact of iPhone 7. Apple shares today are changing hands for $114.
Sacconaghi notes that iPhone sales account for some 75 per cent of Apple’s profits, so analysts have focused on unit sales and gross margins.
But he points to a possible increase in Apple’s average sales price of iPhones. He says that the higher storage options on the jet black models and increased sales of the pricier seventh generation model versus earlier devices could all push up the ASP.
From a low of $595 in the third quarter of 2016 this could jump to $679 in the first quarter of next year, he predicts.
This could equate to a 10 per cent increase in iPhone sales. ®