“This year’s iPhone refresh from Apple is one that is expected to help the company’s revenues surge to a new all-time high in fiscal 2018,” Bill Maurer writes for Seeking Alpha. “While that may not be surprising to many, a lot of investors probably don’t realize how this growth is likely to be achieved. Additionally, while the company’s top line is expected to accelerate quite a bit, how many people realize that Apple may rival many key growth firms over the next year?”
“While the Street is expecting Apple to set a new all-time iPhone sales record for its September 2018 ending fiscal year at around 245 million units, that growth is in the low teens percentage wise and not a substantial surge from the previous record of 231 million seen in fiscal 2015,” Maurer writes. “As an analyst from Guggenheim points out, a large chunk of the company’s overall revenue growth will be driven by greater average selling prices.”
“It’s not just the iPhone that will help moving forward. The Mac only saw a 2% unit sales increase for the first nine months of this year, but a 9% price increase. I also think we’ll see iPad ASPs rebound a little as unit sales start to flatten out, especially if the company discontinues the Mini as some rumors suggest,” Maurer writes. “Throw in the new HomePod coming later this year as well as another year of high teens growth in Apple’s services segment, which could top $30 billion in fiscal 2018, and the period should be rather decent.”
“The 16.2% top line growth forecast by the Street is very comparable to many other tech names that are truly thought of as growth firms,” Maurer writes. “That’s a main reason why investors have sent this stock to a new all-time high recently, but if Apple delivers on this growth expectation, the current average Street price target of $173 may prove to be conservative.
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MacDailyNews Take: Again, the big question for at least the next couple of quarters is: Can Apple make enough iPhone X units to enrich the mix and positively affect iPhone ASP?