J.P. Morgan analyst Samik Chatterjee lifted his price target on Apple Inc.’s stock from $350 to $365 on Thursday. In a note to clients, Chatterjee expressed optimism for the lower-cost iPhone SE’s potential in emerging markets and, in particular, India.
“Apple has struggled to date to build a material presence in India on account of premium price positioning as well as other drivers,” he wrote, but the iPhone SE could be a “panacea” for Apple’s problems in the country.
“We estimate if Apple were able to capture roughly half of the 30 million to 35 million opportunity, it would translate into a 215 million steady annual replacement run-rate for iPhones globally and a ~$7 billion revenue or ~$0.70 cents of EPS upside,” Chatterjee said.
He argued that the $399 price point looks attractive and could help Apple gain market share from Samsung in India.
MacDailyNews Take: When people have the ability to get an iPhone for the same or similar price as an Android handset, smart buyers jump at the chance. People want real iPhones, not ad-tracking, data-siphoning pretenders.