Apple (AAPL) iPhone Dominating Premium Smartphone Market, Canaccord Genuity Says; Positioned for Long-Term Sales and Cash Flow

Canaccord Genuity analyst T. Michael Walkley reiterated his Buy rating and $160 price target on Apple (NASDAQ: AAPL) as the company's iPhone dominated the premium-tier global smartphone market during Q3/C2015 with record share of industry profits and ongoing strong market share of the premium tier smartphone market despite Apple lowering channel inventory with demand greater than supply exiting the September quarter.

"We believe the iPhone 6/6S products should continue to post strong sales and high-end smartphone market share gains," Walkley commented. "With only 31% of the iPhone installed base having upgraded to the iPhone 6/6 Plus devices by Q4/F’15, we anticipate continued strong replacement sales through C2016 and beyond."

The analyst added "Further, consistent with management commentary, we anticipate continued high-end smartphone market share gains for the larger screen iPhone 6/6S devices as our surveys indicate a greater mix of Android smartphone consumers are switching to the iPhone from Android. In fact, as seen in Figure 2 on page 4, only Samsung remains profitable among the Android smartphone OEMs that share profit figures. We believe these trends should grow the iPhone installed base to over 500M exiting C2015, and this base should drive strong future iPhone replacement sales, earnings, as well as cash flow generation to fund strong long-term capital returns programs."

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 $112.34 yesterday.

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