UBS sees $900 'iPhone 8' growing Apple's sales by 15%
Apple's flagship OLED "iPhone 8" could help push shares of the company as high as $170, investment firm UBS believes, issuing a note to investors on Tuesday saying that 2018 earnings per share will likely exceed market consensus expectations.
![](https://apple.insidercdn.com/gallery/22037-26205-22013-26116-iphone8-mockup-l-l.jpg)
Analyst Steven Milunovich of UBS said that Wall Street is currently calling for Apple to see $10.50 earnings per share in fiscal year 2018 -- a number he thinks will be achievable with the anticipated high-end "iPhone 8."
Milunovich's estimates, seen Tuesday by AppleInsider, assume the OLED handset will ship in November with a starting price of $900 for 64 gigabytes of capacity. He also thinks Apple will offer a 256-gigabyte version for $1,000.
UBS's forecasts see iPhone unit sales growing 15 percent in fiscal year 2018, driven by strong demand for the flagship "iPhone 8."
Notably, a $900 starting price would actually be lower than rumored, with some reports claiming the starting price of the redesigned iPhone could exceed $1,000. UBS, however, is skeptical that Apple would charge that much.
"Although a higher OLED price is possible, Apple typically doesn't price too far above high-end competition," Milunovich wrote.
For Apple's 2018 EPS, Milunovich has presented three possible scenarios. In one, the OLED "iPhone 8" sees strong demand and is accompanied by a lower entry price for the mid-tier "iPhone 7s." With an average selling price of $680 and flat gross margin, he sees earnings per share at $10.65.
Another, bearish scenario could see demand for the OLED iPhone being lower than expected, perhaps due to high pricing. With a lower average selling price and gross margins, he could see EPS dropping to $10.45.
Finally, the optimistic case calls for strong OLED demand and no price cut on the LCD "iPhone 7s." In that scenario, he predicts EPS could go as high as $11.90.
Milunovich has maintained a "buy" rating for shares of AAPL with a price target of $170.
![](https://apple.insidercdn.com/gallery/22037-26205-22013-26116-iphone8-mockup-l-l.jpg)
Analyst Steven Milunovich of UBS said that Wall Street is currently calling for Apple to see $10.50 earnings per share in fiscal year 2018 -- a number he thinks will be achievable with the anticipated high-end "iPhone 8."
Milunovich's estimates, seen Tuesday by AppleInsider, assume the OLED handset will ship in November with a starting price of $900 for 64 gigabytes of capacity. He also thinks Apple will offer a 256-gigabyte version for $1,000.
UBS's forecasts see iPhone unit sales growing 15 percent in fiscal year 2018, driven by strong demand for the flagship "iPhone 8."
Notably, a $900 starting price would actually be lower than rumored, with some reports claiming the starting price of the redesigned iPhone could exceed $1,000. UBS, however, is skeptical that Apple would charge that much.
"Although a higher OLED price is possible, Apple typically doesn't price too far above high-end competition," Milunovich wrote.
For Apple's 2018 EPS, Milunovich has presented three possible scenarios. In one, the OLED "iPhone 8" sees strong demand and is accompanied by a lower entry price for the mid-tier "iPhone 7s." With an average selling price of $680 and flat gross margin, he sees earnings per share at $10.65.
Another, bearish scenario could see demand for the OLED iPhone being lower than expected, perhaps due to high pricing. With a lower average selling price and gross margins, he could see EPS dropping to $10.45.
Finally, the optimistic case calls for strong OLED demand and no price cut on the LCD "iPhone 7s." In that scenario, he predicts EPS could go as high as $11.90.
Milunovich has maintained a "buy" rating for shares of AAPL with a price target of $170.
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