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Higher Apple (AAPL) iPhone Resale Value Suggests Strong Demand, Piper Jaffray's Munster Says

June 24, 2015 6:53 AM EDT
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Price: $171.48 -1.06%

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    39 Buy, 25 Hold, 7 Sell

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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.



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