In a note to clients, Raymond James analyst Chris Caso said his firm’s production checks show that Apple has ordered more higher-end iPhone 12 models than entry-level handsets, which should boost the iPhone’s average selling price (ASP). This, in turn, has caused Caso to boost his price target on Apple shares.
Patrick Seitz for Investor’s Business Daily:
“While our total production estimates are in line with current consensus, we expect upside driven by mix,” Caso said in a note to clients. “Current production plans suggest the most favorable mix we’ve ever seen for an iPhone launch.”
Caso reiterated his outperform rating on Apple stock but raised his price target to $120 from $110.
He sees Apple benefiting from a two-year 5G upgrade cycle among iPhone owners.
His channel checks indicate that Apple will launch four new models in the iPhone 12 family. They will have OLED displays ranging from 5.4 inches to 6.7 inches. Starting prices are likely to span $699 to $1,099, Caso said.
MacDailyNews Take: Is AAPL stabilizing now after the huge run-up and beginning its recovery? All bets are off during the U.S. Presidential Election final stretch. But, soon, let the multi-year Mother of All iPhone Super Cycles begin!
New iPhone, price will be higher. Wow that was hard to figure out.
My guess is the entry iPhone 12 mini will be $699 (5.4 inch) with the iPhone 12 (6.1 inch) will be $799. So the entry point will be the same cost as last year, but the 6.1 inch price will be increased by $100. It is possible the 6.1 inch will be priced at $749. The mix between the two will drive the average higher even if the Pro models do not see a price increase. Further, with only a $200 difference between the iPhone 12 and iPhone 12 Pro, it may push more buyer to consider the Pro, especially if it has 128GB storage vs 64GB storage. All of this should definitely affect the average selling price.