Higher Apple (AAPL) iPhone Resale Value Suggests Strong Demand, Piper Jaffray's Munster Says
Get Alerts AAPL Hot Sheet
Rating Summary:
39 Buy, 25 Hold, 7 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 11
Join SI Premium – FREE
Piper Jaffray analyst Gene Munster said Apple (NASDAQ: AAPL) iPhone resale values are higher than last year and suggest strong demand.
Munster commented, "We track pricing of iPhones on eBay (US) and Taobao (China), which we view as a high level read on both used and new iPhone demand (US & China account for about 50% of iPhone units). We have found that the resale value of the 6/6 Plus is comparatively higher than the resale value of the 5S and 5C during the same post-launch period last year suggesting strong iPhone demand. We believe iPhone will continue to gain share at the high end smart phone market, which, despite tough comps starting in Dec-15, should move shares of AAPL higher."
In the US 9 months after launch, the firm observed that a used iPhone 6 and 6 Plus was selling for 72% of new retail value, compared to the iPhone 5S & 5C selling for 60% and 48% of retail price 9 months after their launch.
In China, during the same 8 month post-launch period they measured used iPhone 6 and 6 Plus pricing at 73% of new retail value and the iPhone 5S & 5C at 65% and 53%.
The firm reiterated an Overweight rating and price target of $162 on AAPL.
For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.
Shares of Apple closed at $127.03 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- DZ Bank Downgrades Apple (AAPL) to Hold
- TD Cowen Starts Grindr (GRND) at Buy
- Apple (AAPL) option IV into hosting Worldwide Developers Conference (WWDC) online from June 10 through 14, 2024
Create E-mail Alert Related Categories
Analyst Comments, Hot CommentsRelated Entities
Piper Jaffray, Gene MunsterSign 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!