Ahead of Apple’s September 7th “Far Out” event, optimism on Apple’s pending release of a slew of new products is running high.
Bank of America analyst Wamsi Mohan reiterated in a note to clients the firm’s “Buy” rating on Apple stock with a $185 price target.
Brian Sozzi for Yahoo Finance:
“In our opinion, iPhone pricing is the main focus item for investors followed by timing and cadence of the launch and any news on pricing/bundling,” Bank of America analyst Wamsi Mohan wrote in a new note to clients.
“In our Apple model we assume iPhone 14 is launched at the same launch prices as iPhone 13,” Mohan wrote. “However, with an inflationary backdrop, Apple could choose to increase the price of the Pro models (high end consumer less sensitive to price) and leave the lower end models unchanged.”
“If Apple were to raise pro-model prices by $50,” Mohan added, “we estimate a $0.20 EPS tailwind. We look at a scenario where Apple raises iPhone 14 Pro/Pro Max prices by $50 each, while lowering prices for iPhone 14/14 Max by $50. We estimate about $0.10 benefit if 10 million incremental iPhone units are sold.”
MacDailyNews Take: Apple’s iPhone 14 family is going to kill it, with the Pro model differentiation enticing customers to move upward, benefitting Apple’s iPhone mix (higher ASP) beyond most analysts’ expectations.
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