Apple (AAPL) iPhone 8 Super Cycle May be a Dud - Wells Fargo
- Netflix, Inc. (NFLX) Tops Q4 EPS by 1c; Subs Beat Views
- S&P 500 ends up slightly with boost from financials; Netflix up late
- Nestle Said Examining Takeover of Mead Johnson (MJN) - Source
- La Quinta Holdings (LQ) Gains on Plan to Split in Two
- After-Hours Stock Movers 01/18: (OCLR) (CSX) (NFLX) Higher; (AMDA) (RCII) (ZYNE) Lower (more...)
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
Wells Fargo analyst Maynard Um said bullishness on Apple's (NASDAQ: AAPL) next iPhone cycle should be tempered as their units per carrier analysis suggests headwinds in 2017.
Um said while the general feedback is that the iPhone 8 cycle will be strong based on the premise that even a modest
upgrade rate of the 500MM+ iPhone user base would result in an up year over year units, he sees two inherent flaws with this thinking: 1) not all of the 500MM is what we would consider eligible (we think hand-me-down iPhones, for example, to one’s child or even low-end iPhone sales in some emerging countries should not be included in the base) and 2) it ignores the cyclicality and subscriber eligibility evident from our proprietary units per carrier analysis, which suggests the iPhone 8 may have headwinds.
The analyst also note that the current free iPhone 7 promotions by carriers may impact the 2018 cycle as those that upgrade would see an increase in their monthly bills if they upgrade.
Um maintained a Market Perform rating and $105-$120 valuation range as they believe there will be mounting concern over the March and June quarters and, while recent data points have been positive, believe they may not be as bullish as the headline data suggests.
Shares of Apple closed at $113.55 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Wells Fargo Downgrades Goldman Sachs BDC, Inc. (GSBD) to Market Perform Citing Valution
- Deutsche Bank Raises Price Target on IHS Markit (INFO) to $44; Reiterates Buy
- UBS Cuts Price Target on Morgan Stanley (MS) to $49; Reiterates Buy
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesWells Fargo
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!