“Shares of Apple are up 62 cents, or 0.4%, at $147.21, after Credit Suisse’s Kulbinder Garcha this morning reiterated an Outperform rating on the shares, and a $170 price target, noting that production of the company’s iPhone appear to be trending higher based on reports from his colleagues gathering data in Asia,” Tiernan Ray reports for Barron’s.
“Garcha thinks total estimates for iPhone production this year are on the rise,” Ray reports, “and that average selling prices may end up being higher based on a greater proportion of the most expensive model of the next iPhone.”
Given its affluent user base, a significant feature upgrade, limited price elasticity shown so far, as well as Samsung’s higher pricing points of the S8 devices, we believe our ASP assumptions could prove conservative at $676/$704 for CY17/CY18. — Credit Suisse analyst Kulbinder Garcha
Read more in the full article here.
MacDailyNews Take: Not matter how many they make, they won’t be able to make enough to fill the voracious supercycle’s tank!
Interesting price target, so why are Apple’s shares sinking in the mud while the other tech companies’ stocks are rising. Apparently, very few big investors have any faith in this so-called iPhone supercycle. I’m fairly certain if the big investors were believers, the stock would certainly be rising with the rest or maybe even above the rest. It appears Warren Buffett made a big mistake putting his money on Apple while the rest of the market is easily outperforming Apple. He would have made a fortune in any FANG stock, Tesla or Microsoft. None of those stocks got downgrades while AAPL got two downgrades.
For starters, many believe Apple released a half-baked Home Pod product. Sentiment on the product would be better if Siri had been vastly improved, but Siri in iOS 11 is still behind Google’s and Amazon’s current voice assistants.
The other reasons could be the rumors of slower modem speeds, and a lack of rumors regarding wireless range charging in the next phone. Also, their strategy to make car software instead of an actual car isn’t helping the stock either.