UBS ups Apple price target to $125 after survey indicates strong share for iPhone 6 Plus
The results of a recent global survey of prospective smartphone buyers conducted by UBS forecast a favorable share of iPhone 6 Plus sales and strong demand in China, prompting the investment firm to raise its price target.
The results of the survey conducted by the UBS Evidence Lab were published this week by analyst Steven Milunovich. Encouraged by the results shown by the survey, Milunovich has increased his price target on shares of AAPL to $125, up from his previous projection of $115.
Milunovich said the survey suggests demand for the iPhone 6 could be about 190 million units through December of 2015. A total of 4,000 respondents were polled from the U.S., U.K., Italy, and mainland China.
The analyst was most surprised that respondents indicated they prefer the iPhone 6 Plus over the iPhone 6. Demand for the 5.5-inch iPhone 6 Plus was greatest in China, but even in the U.S., more than half of respondents planning to buy an iPhone said they preferred the Plus.
Milunovich doesn't expect that the iPhone 6 Plus will actually outsell the iPhone 6 on the market, but he did say that the survey suggests demand for the iPhone 6 Plus might exceed market expectations. With a starting price of $299 with a new two-year service contract, that would bode well for Apple's bottom line.
Respondents also indicated they are most likely to buy the 64-gigabyte version of the iPhone, which along with high demand for the iPhone 6 Plus could help grow the average selling price.
The survey also found that almost one-third of interested iPhone buyers currently own Samsung phones. As a result, Milunovich believes the iPhone 6 upgrade cycle could bring about significant share gains for Apple, as users switch from Android devices to iOS.
And those who do switch are highly likely to stay --?even in China. The survey found that Apple has the highest overall retention rate of 84 percent, which is twice that of Samsung or Xiaomi.
The survey also found that over 70 percent of iPhone 6 buyers say they are at least somewhat likely to use Apple Pay.
"Apple has captured the most valuable real estate in the world -- a position in the minds of consumers," Milunovich wrote.
The results of the survey conducted by the UBS Evidence Lab were published this week by analyst Steven Milunovich. Encouraged by the results shown by the survey, Milunovich has increased his price target on shares of AAPL to $125, up from his previous projection of $115.
Milunovich said the survey suggests demand for the iPhone 6 could be about 190 million units through December of 2015. A total of 4,000 respondents were polled from the U.S., U.K., Italy, and mainland China.
The analyst was most surprised that respondents indicated they prefer the iPhone 6 Plus over the iPhone 6. Demand for the 5.5-inch iPhone 6 Plus was greatest in China, but even in the U.S., more than half of respondents planning to buy an iPhone said they preferred the Plus.
Milunovich doesn't expect that the iPhone 6 Plus will actually outsell the iPhone 6 on the market, but he did say that the survey suggests demand for the iPhone 6 Plus might exceed market expectations. With a starting price of $299 with a new two-year service contract, that would bode well for Apple's bottom line.
Respondents also indicated they are most likely to buy the 64-gigabyte version of the iPhone, which along with high demand for the iPhone 6 Plus could help grow the average selling price.
The survey also found that almost one-third of interested iPhone buyers currently own Samsung phones. As a result, Milunovich believes the iPhone 6 upgrade cycle could bring about significant share gains for Apple, as users switch from Android devices to iOS.
And those who do switch are highly likely to stay --?even in China. The survey found that Apple has the highest overall retention rate of 84 percent, which is twice that of Samsung or Xiaomi.
The survey also found that over 70 percent of iPhone 6 buyers say they are at least somewhat likely to use Apple Pay.
"Apple has captured the most valuable real estate in the world -- a position in the minds of consumers," Milunovich wrote.
Comments
It's funny, when I jumped from my 4 to a 6, the size increase was noticeable but not too bad. But now that I'm adjusted I think I could switch to the Plus if need be (I don't plan to at the moment, though a 12.x" iPad might make me switch). I suspect this will apply to most people still in love with the 4" size, they'll adjust to the 4.7" and love it.
Now if I hold a 3.5" iPhone it feels like a toy. Don't even get me started on my first-gen Touch, that feels like a baby toy.
The stock should be $175 or so before WWDC, I would hope.
It ain't market share ... It ain't profit share ... It's mind share ...
Couldn't of said it any better than that ... And that's all you need to know!
It ain't market share ... It ain't profit share ... It's mind share ...
Couldn't of said it any better than that ... And that's all you need to know!
This is the biggest thing Microsoft is up against. They may be making some genuinely good products, but they're not seen as an innovator by 98% of people, they're seen as a stodgy old company who makes 'bad' operating systems.
Woz... shaddup already! ????
All the more head scratching why the new MS phone has Microsoft written on the front and back of the device. IMO seeing the name Microsoft would be a turnoff but for some reason they decided just replacing the name Windows with Microsoft will solve their problems.
And yet Woz says the iPhone 6 was three years to late.
I like Woz. I respect Woz. Woz and I share some opinions (he and I would probably be two of the three people that want a wrist computer, that straps on your forearm)
That being said, I'm very glad Woz has no operational power at Apple.
They should've put Samsung on their phones instead. ????
All the more head scratching why the new MS phone has Microsoft written on the front and back of the device. IMO seeing the name Microsoft would be a turnoff but for some reason they decided just replacing the name Windows with Microsoft will solve their problems.
It might help if they called their mobile OS "Windows XP".
Seriously I don't get why what he says carries so much weight (this comment was reported on CNBC this morning). What has he done since leaving Apple? Apple is where it is because of Steve Jobs.
Seriously I don't get why what he says carries so much weight (this comment was reported on CNBC this morning). What has he done since leaving Apple? Apple is where it is because of Steve Jobs.
Well, he founded a company in 2005 called Acquicor with Gil Amelio* and Ellen Hancock*, (of all people), that bought a company in 2007, then basically failed in 2008. So I guess there's that.
*Clearly he didn't realize that often, if Jobs said someone was a bozo, he was right.
Whether the products are "genuinely good" is debatable, it's the UI by Fisher-Price that does in the tasteless stodgy old has-beens at Microsloth... :smokey:
Microsoft truly believes the name attracts people... They traumatized a generation of computer users with cryptic error codes and bad UI and think no one remembers...
Then they smear their name all over their phone as if people will be proud to show it off... such egotists are the Redmondites...
THAT would be soooo sweet!!! Now, if only I owned some shares....
Nah ... Woz is pretty much 3 years ahead of most of us