“Apple continues to push the boundary of consumer tech by refining and improving their products with today’s updates to the iPhone and Apple Watch,” Gene Munster writes for Loup Ventures. “These improvements drive customer loyalty that creates revenue predictability and should result in higher ASPs, supporting annual cash from operations of $85B+ per year that can be invested in the business and returned to investors.”

“Once again, Apple has shown their mastery of pricing tiers. Factoring in nine new phones with price points above the FY18 ASP ($745) makes it highly likely that ASPs will trend up,” Munster writes. “The iPhone lineup now ranges from $449 to $1,449, with an unweighted average of $765. This is up 20% from last year when the unweighted average was $636, with the lineup ranging from $349 to $1,099.”

“We are raising our iPhone ASP estimate for FY19 to $791 (up 7% y/y) vs. the Street at $765 (up 2% y/y),” Munster writes. “The iPhone franchise is better-positioned for sustainable growth (0%-5%) over the next several years, given Apple continues to earn recurring iPhone customers with innovative hardware and software.”

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MacDailyNews Take: Exactly!