We are reducing our F4Q17 (Sept) to reflect more modest iPhone 8 and 8 Plus demand. Checks in US/Europe indicated similar demand patterns to those observed in Asia and Australia… i.e. modest crowds but definitely thinner than in the past while ship times for the devices ordered online were also quicker… We are not surprised that current ship times are quicker and lines shorter than prior launches, as we believe users will wait to compare to iPhone X before making a final purchase. — Citi analyst Jim Suva
Kim reports, “Suva reiterated his buy rating and his $170 price target for Apple shares, which is 12 percent higher than Friday’s close.”
We do expect volatility ahead as consensus estimates calibrate to a lower than expected September quarter given slightly more tempered demand ahead of iPhone X launch (Nov 3rd) coupled with supply constraints for iPhone X… We believe Apple can return to sustainable growth post iPhone X. We see growth opportunities in Services (in-app purchasing, Apple Pay, iCloud, Apple Care, etc.) and India, aka Applewood, as underappreciated… Despite the outperformance this year, shares remain attractively valued relative to the market and can undergo sustainable multiple expansion. — Citi analyst Jim Suva
Read more in the full article here.
MacDailyNews Take: As we’ve predicted since Day One:
You know, we’re not convinced that Apple will be overrun with iPhone 8/Plus preorders. Yes, use the App Store app, in case, but it might be an easier night than you think. In fact, Apple just might have a problem on their hands, judging by the early results of our online poll. It’s early, but we expect Apple to market the living you-know-what out of the iPhone 8/Plus because, next to the iPhone X, it’s looking like a tough sell. — MacDailyNews, September 14, 2017
Since the U.S. carriers are already offering iPhone 8/Plus promotions, Apple seems to have planned for the expected reaction to iPhone 8/Plus with iPhone X looming over them.
Analysts: Users are passing on iPhone 8/Plus, waiting for iPhone X instead – September 20, 2017
Associated Press reviews iPhone 8/Plus: Like flying in coach versus first class iPhone X – September 19, 2017
USA Today’s Baig reviews iPhone 8/Plus: Excellent iPhones overshadowed by iPhone X – September 19, 2017
Sprint follows AT&T with free iPhone 8 offer for trade-in – September 18, 2017
Why you might get a deal on a new iPhone after all – September 18, 2017
AT&T fires first shot in iPhone price war with buy-one-get-one-free offer – September 13, 2017