Strong iPhone 7 Plus adoption seen boosting ASP, Apple's Dec. quarter results

Posted:
in AAPL Investors
Though iPhone shipments could fall under Wall Street consensus for the December quarter, Apple's revenue from the product should be boosted by high consumer favor for Plus models, an analyst noted on Tuesday.




A recent Consumer Intelligence Research Partners survey in the U.S. found that Plus models represented 42 percent of iPhone sales, up from 26 percent a year ago, according to memo by UBS analyst Steven Milunovich, obtained by AppleInsider. The Plus is the only version of the iPhone 7 with a dual-lens camera, offering optical zoom for the first time on an iPhone, along with a special Portrait mode simulating blurred backgrounds.

The CIRP also found that 62 percent of people were choosing to pay extra for storage upgrades, which along with the Plus preference could push Apple's average selling price (ASP) higher. UBS's target is $693, higher than the consensus $685.

This means that despite the firm forecasting 76 million in global iPhone sales versus a consensus 78 million, UBS is calling for $77.8 billion in revenue, higher than the Street's $77.4 billion, and at the upper end of Apple's own guidance between $76 billion and $78 billion.

Other aids to Apple are said to include "stable" Android switching figures, and no apparent stretching in replacement cycles. Indeed CIRP said that 54 percent of people in the December quarter had phones that were two years old or less, up from 49 percent in 2014.

UBS has set a "buy" rating for Apple stock, with a $127 price target. The firm is downgrading its iPhone shipment predictions for the upcoming March and June quarters -- from 55 million to 52 million, and from 44 million to 42 million, respectively -- but suggests that this may not matter if investors stay optimistic about Apple's new financial year.

The company is due to announce official results from the Decmeber quarter on Jan. 31, following them with a conference call likely to be hosted by CEO Tim Cook and CFO Luca Maestri.

Comments

  • Reply 1 of 11
    eightzeroeightzero Posts: 1,518member
    Prediction: AAPL will announce they made a metric fucktonne of money.
    calilkruppradarthekatadm1jSnivelybadmonk
  • Reply 2 of 11
    lkrupplkrupp Posts: 4,708member
    The iPhone 7 and 7 Plus are market failures. The iPhone 7 and 7 Plus are market successes. iPhone 7 sales are sluggish. iPhone 7 sales are strong. Apple is doomed. Apple is still on top. Apple can’t get its act together, fire Cook. Apple is firing on all cylinders, buy AAPL. Quality control down the tubes, fire Schiller. Quality control is just fine, Samsung still sucks. So which is it?
    quadra 610radarthekat2old4funwatto_cobra
  • Reply 3 of 11
    lkrupp said:
    The iPhone 7 and 7 Plus are market failures. The iPhone 7 and 7 Plus are market successes. iPhone 7 sales are sluggish. iPhone 7 sales are strong. Apple is doomed. Apple is still on top. Apple can’t get its act together, fire Cook. Apple is firing on all cylinders, buy AAPL. Quality control down the tubes, fire Schiller. Quality control is just fine, Samsung still sucks. So which is it?
    Why can't it be all of it, in equal measure?!
  • Reply 4 of 11
    blastdoorblastdoor Posts: 1,610member
    lkrupp said:
    The iPhone 7 and 7 Plus are market failures. The iPhone 7 and 7 Plus are market successes. iPhone 7 sales are sluggish. iPhone 7 sales are strong. Apple is doomed. Apple is still on top. Apple can’t get its act together, fire Cook. Apple is firing on all cylinders, buy AAPL. Quality control down the tubes, fire Schiller. Quality control is just fine, Samsung still sucks. So which is it?
    All of the above.

    You obviously haven't read Dickens. 
    ddawson100palomine
  • Reply 5 of 11
    I think that Apple can go the way where it will offer new special technologies in top model or extra model that can help them bring those technologies to market faster. It would not require so big quantities to produce and would be easier to find supplier with desired quality/quality ratio. Those models can hold higher price tag and help increase ASP as was mentioned with Plus model here.
    edited January 24 ration al
  • Reply 6 of 11
    eightzero said:
    Prediction: AAPL will announce they made a metric fucktonne of money.
    But those on Wall St who speak out of their backsides want THREE fucktonnes so the stock will crash. Well, that's what those who will be shorting the stock will want.
    Even if total earnings/profits exceed both guidance and expectations the price will drop if Apple miss the expected targets for iPhone shipments by even one device.
    A really sad state of affairs.
    Apple and Tim Cook in particular need to do something about the shorters. Quite what I don't know.

    watto_cobrapalomine
  • Reply 7 of 11
    quadra 610quadra 610 Posts: 6,689member

    ...
    edited January 24
  • Reply 8 of 11
    quinneyquinney Posts: 2,479member
    eightzero said:
    Prediction: AAPL will announce they made a metric fucktonne of money.
    Maybe, but Wall St analysts aren't on the metric system, so AAPL will be downgraded.
    watto_cobra
  • Reply 9 of 11
    I love how the person in the background is just laughing at the ridiculousness of that costume.
  • Reply 10 of 11
    I strongly believe there is nothing to worry about Apple yet. Law of AAPL (valid only to Apple): The amount of media negativity is exactly a direct proportional to the amount of money Apple earns in a set period of time.
    watto_cobrabadmonk
  • Reply 11 of 11
    blastdoor said:
    lkrupp said:
    The iPhone 7 and 7 Plus are market failures. The iPhone 7 and 7 Plus are market successes. iPhone 7 sales are sluggish. iPhone 7 sales are strong. Apple is doomed. Apple is still on top. Apple can’t get its act together, fire Cook. Apple is firing on all cylinders, buy AAPL. Quality control down the tubes, fire Schiller. Quality control is just fine, Samsung still sucks. So which is it?
    All of the above.

    You obviously haven't read Dickens. 

    What the dickens?? It was the best of posts, it was the worst of posts...
Sign In or Register to comment.