“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!