What’s The Upside For Apple’s Stock If iPhone 7 Surprises?
Apple’s (NASDAQ:AAPL) next iPhone (presumably called iPhone 7) is expected to be unveiled in early September, with retail availability likely towards the middle of the month. Investors and analysts appear to have already tempered their expectations for the device, which is reported to sport an industrial design that is largely similar to the iPhone 6/6S, as Apple focuses on developing technologies for next year’s 10th anniversary iPhone, which could see a radical overhaul.
We have a $120 price estimate for Apple, which is about 10% ahead of the current market price.
See Our Complete Analysis For Apple Here
- Down 10% This Year, Will Gen AI Tools Help Apple Stock Recover?
- Down 5% Over The Last Month, Will Strong iPhone Sales Help Apple Offset Mac Headwinds In Q1?
- After Over A 40% Rally In 2023, Will Antitrust And iPhone Issues Hurt Apple Stock?
- Up 45% Since The Beginning Of 2023, Where Is Apple Stock Headed?
- Up 34% This Year, Will Apple Stock Rally Further Following Q4 Results?
- Will New iPhones Help Apple Stock Offset A China Slump?
While it might take a groundbreaking new design to set off a major upgrade cycle for Apple, there could be some upside for Apple’s stock if the the iPhone 7 just turns out to be more desirable than expected. For instance, the new device could sport features – such as better waterproofing, a thinner profile, faster charging, force-sensitive home button and dual-lens cameras – that give customers coming off two-year contracts/installment plans enough reason to upgrade. Moreover, there is a possibility that Apple could launch a higher-end version of the bigger screen device, with the Pro moniker, as it looks to offset potential ASP declines stemming from more generous storage on base models.
10% Upside To Apple Stock Price If iPhone 7 Fares Better Than Expected
Our current $120 price estimate for Apple estimates that the company will ship roughly 209 million iPhones for calendar year 2017, the first full calendar year of availability of the iPhone 7, with the number rising at a CAGR of 3% through 2023, the end of our forecast period. We estimate that iPhone ASPs will stand at about $611 in 2017, declining at a CAGR of 1.5%. However, if the iPhone 7 enables Apple to bolster shipments back to 2015-levels of 230 million in 2017 with ASPs improving to about $650, and growth rates remaining the same over our review period, this could bolster our price estimate for Apple to about $132, marking a 10% upside to our current price estimate.
View Interactive Institutional Research (Powered by Trefis):
Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap
More Trefis Research