Apple's (AAPL) Large Base Of Old Phones Will Drive Upgrades - BMO

BMO Capital analyst, Tim Long, took note of Apple (NASDAQ: AAPL) management's data point last quarter that the iPhone installed base grew 80% over the last two years. He attempted to dig deeper and believes the company is entering the iPhone 7 cycle with this highest percentage of phones in the installed base at least two years old, at about 26% (compared to 23% for iPhone 6). This translates to about 120 million phones. As a result, he believes the device will drive an improved replacement rate even if it has lackluster features.

No change to Outperform rating or $117 PT.

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 $95.22 yesterday.

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