Apple’s success over the next year will depend heavily on how the iPhone X fares. Ultimately, we think it’s a make or break story for
The iPhone mix and average selling price (ASP) will be the biggest driver of Apple shares in the next year, which we expect to be favorable to the overall growth story. At first take, the $1,000 starting price for the phone feels like a deal-breaker.
But we think that’s a fallacy. Consumers will take a step-function jump in what they’re willing to spend on an iPhone given most buy their phones in installment plans.
We also just raised our estimates for fiscal year 2018, upping our iPhone average selling price to $740, ahead of the $722 estimate, as well as our revenue and earnings per share projections. Higher ASP’s mean upside to Street estimates.
When preorders for the $1,000 iPhone model opened in the early morning hours on Friday, demand looked strong right out of the gate. Lead times were at five to six weeks, in line with our expectations of four- to six-week lead times by 8 a.m. ET on Friday.
Long lead times are attributed to bottlenecks in production, like its screen and TrueDepth camera. Based on previous years, we expect little change in lead times over the next week.
- Apple shares soar 3.4% as multiple iPhone models sell out
- iPhone X is Apple's latest attempt at a Samsung killer. But it's coming late.
- Icahn: Apple shares sell at 'half price' value
- Apple posts record quarterly sales of iPhones and iPads, yet shares drop 6.5% in after-hours trading
- Police fear suspect in double murder outside Bronx hotel may make break for Haiti
- Last minute Ironman preparations could make, break race
- NY Giants training camp: Wide receiver Rueben Randle out to break loose in Year 3
- Apple iPhone consumers are waiting for iPhone X
- Samsung Note 8, then iPhone 8, could remedy stagnant phone sales
- Apple results could hold clues to iPhone 8 sales date
- iPhone X supply crunch mean you may wait till February to get one
- Apple Pay launches with few hiccups
- Apple sells 9 MILLION iPhone 5s and iPhone 5c since Friday, most successful launch ever
- Wall Street watching early iPhone sales nervously
- Tight supply may crimp first-weekend iPhone sales
- Apple reports solid quarter; consumers eye new iPhone
- Get ready for thousands of augmented reality Apple apps
- Apple: New iPhones on pace to top first-weekend sales record
- Here's what will make smartphones exciting again
- Apple, Priceline, Google racing to $1,000 a share
iPhone X will 'make or break' Apple shares over the next year, says Gene Munster have 396 words, post on www.cnbc.com at October 30, 2017. This is cached page on Konitono.News. If you want remove this page, please contact us.