Bernstein's Sacconaghi Sees Stronger Apple (AAPL) iPhone ASPs
- Top 10 News for 12/2: Crude Rips on OPEC Cut; Starbucks' Schultz Steps Down; Nonfarm Payrolls Flat in Nov.
- Unemployment Rate Drops to 4.6%
- Bond yields slip on U.S. jobs data, euro steady before Italy vote
- Alibaba (BABA) Founder Jack Ma Discuss Plans to Retire; 'I Don't Want to Die at the Office'
- Starbucks Coffee (SBUX) CEO Howard Schultz to Step Down, Appointed Executive Chairman; Kevin Johnson New CEO
News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.
Bernstein analyst Toni Sacconaghi weighed in on Apple (NASDAQ: AAPL) iPhone ASPs, saying they believe iPhone 7's product line-up is poised to strengthen Apple's ASPs.
Sacconaghi cited price increase on the 7-plus, higher storage configurations on its "jet black" offerings, and an expected mix shift to the 7-plus due to its enhanced functionality.
On net, the firm's detailed bottom-up analysis indicates that iPhone ASP could increase from its recent lows of $595 in FQ3 16 to $679 in FQ1 17. As such, they believe that consensus ASP estimates for iPhone 7 ASPs of $659 may be too conservative.
"We view potential iPhone ASP strength as an additional cushion to FQ1 consensus revenue estimates – collectively, the December quarter's additional week and potentially higher ASPs could add >10% to iPhone revenues YoY," the analyst said. "We continue to view the risk reward on AAPL as favorable and the stock as an attractive re-valuation opportunity going into the iPhone 7S/8 cycles."
The analyst maintained an Outperform rating and price target of $125 on AAPL.
Shares of Apple closed at $113.09 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Apple (AAPL) volatility at low end of range into Holiday shopping season
- Western Digital (WDC): Analyst Day Preview - Susquehanna
- Brean Capital Cuts Price Target on G-III Apparel Group (GIII) Following 3Q Miss
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Hot Comments, Trader Talk
Related EntitiesSanford C. Bernstein, Toni Sacconaghi
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!