I used to be one of those people who upgraded to the latest iPhone on the very day it was released. My motive was fairly straight forward. I was enamored with the new technology, speeds of the phone, and new features. However, the phones have gotten so good, commingled with my increasingly curmudgeon attitude, that I haven’t upgraded my iPhone in years. I think I have the iPhone 5 or 5s, while everyone else in my family has brand new ones.
Seriously, I couldn’t care less. As long as I am able to place a call, retrieve my emails, and do cursory searches, I am happy.
Credit Suisse thinks I’m an outlier. In a research note out, they’re suggesting chasing Apple up here — at record highs — ahead of the 2018 release of the iPhone 8.
“We remain convinced that the iPhone product cycle will be significant in terms of driving multi-year unit growth, and maintain our conviction on Apple’s ability to introduce new higher pricing tiers with improved mix,” analyst Kulbinder Garcha wrote in a note to clients Tuesday entitled “8 Super-cycle – rising demand, rising price.”
“Given this, as well as a high retention rate, we see the 8 Super-cycle will unleash pent-up demand,” he wrote.
“Apple has historically raised iPhone prices along with key updates,” he wrote. “Given its affluent user base, a significant feature upgrade, limited price elasticity shown so far, as well as Samsung’s higher pricing points of the Galaxy S8 devices, we believe our pricing assumptions could prove conservative at $670/$770/$900 for three tiers of the new phones.”
Credit Suisse raised their estimates to $11.62 from $10.77. But does it really matter, all things considered? The company has $250b in the bank. They already won.
Their 12mo price target is $170.
I’m just curious what the 8 will have that the 7s didn’t? Remember years ago when there was speculation that the iPhone might include MVIS tech for their projector technology. That never panned out. Aside from processing speed and better resolution, I remain unconvinced as to why I should upgrade to a new phone.
Thoughts?
The post Credit Suisse: Buy Apple Ahead of iPhone 8 ‘Super Cycle’ appeared first on Trading with The Fly.
May 23, 2017 at 07:31PM
from Dr. Fly
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