Bernstein's Sacconaghi Sees Stronger Apple (AAPL) iPhone ASPs
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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.
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 $113.09 yesterday.
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