Deutsche Bank analyst Sidney Ho says to buy Apple stock. The analyst conducted a survey indicates that since the pandemic’s onset, the iPhone’s share of the U.S. installed base and length of smartphone ownership has “remained relatively consistent.”
The iPhone’s cut of the market share remains just below 50%, whilst over the past 2 years, roughly 75% of smartphone users have purchased a new phone… “The launch of 5G smartphones does not seem to have significantly changed the length of smartphone ownership (both iPhone and other),” Ho said, “Although we do expect the refresh cycle to accelerate when 5G infrastructure is more built out.”
When looking to make a smartphone purchase, 57% of iPhone users intend to get the latest model, just below the 59% who planned to do so in Dec 2019. Storage wise, [fewer] are inclined to get 512 GB models – the highest amount available – although 64 GB appears insufficient to most. Since Dec 2019, consumers buying 64GB models have dropped from 18% to 8%, while in the same period, those purchasing 128 GB models grew from 12% to 24%.
[Deutsche Bank] has also been gathering geolocation data, which shows that Apple’s U.S. store traffic is on the rise.
“While store traffic bottomed out in the spring of 2020,” Ho noted, “It has improved since and is now at about 40-50% of the volume seen pre-pandemic.”
Given all of the above, Ho stays with the bulls. The 5-star analyst rates Apple shares a Buy along with a $160 price target. Should Ho’s thesis play out, investors are looking at upside of ~30% over the next 12 months.
MacDailyNews Take: Own it, don’t trade it. As always, it’s better to buy it at a discount than not. 🙂
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Prost, everyone! 🍻