‘Strong demand’ for Apple’s iPhone X could lift ASPs and boost profits

Another survey of by a Wall Street broker, this one by RBC Capital, suggests Apple Inc.

AAPL, -0.52%

earnings could get a boost next year from higher selling prices (ASPs) given data suggesting “strong demand” for higher-priced iPhones. Analyst Amit Daryanani said a survey of over 4,000 individuals suggests the iPhone X is the most popular phone, more than the lower-priced iPhone 8 series, and that demand is strongest for the more-costly higher tier memory iPhone. Daryanani said wireless charging is the most attractive feature of the new iPhones, which could mean a “tailwind” from the sale of wireless charging accessories. And some data suggests the possibility of a increased switching from Alphabet Inc.’s

GOOGL, -0.74%

Android phones. Daryanani affirmed his outperform rating and stock price target of $180, while raising his 2018 EPS estimate to $10.36 from $10.32. “We think ASPs could surprise investors on the upside due to strong demand for iPhone X and $50 ASP increase broadly this year vs. last generation<" Daryanani wrote in a note to clients. Apple's stock, which slipped 0.3% in morning trade Monday, has gained 6.8% over the past three months, while the Dow Jones Industrial Average

DJIA, +0.33%

has tacked on 5.2%.

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