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.
“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!