rtmark
LearnBonds.com

Apple Inc. (AAPL) iPhone 6S Survey Shows Eager Buyers

Apple Inc. iPhone 7 specs and rumors

Apple Inc.  will convince more than a hundred million people to buy an iPhone 6S in the next twelve months. Wall Street, as Apple heads toward shipping the smart phone for the first time, is beginning to think those sales may be stronger than last year as more iPhone owners look to upgrade this time around.

Apple Inc. iPhone 7 leaked pics show specs

In a report published on Monday morning, research house Baird said that upgrade intent was much higher this time around than at the same time last year. The firm’s survey of iPhone owners found that the number of users planning to upgrade to the latest version of the smart phone was up 28 percent year over year. In its August poll the firm found that 22 percent of iPhone owners were planning to upgrade.

Baird looks for strong iPhone 6S sales

Baird says that it expects Apple  to Outperform in the year ahead, and put a price target of $155 on the shares. iPhone 6S sales are, before the device has arrived in stores, a mystery, but that won’t stop Wall Street trying to figure out what’s going to happen with the device.

Heading into the launch many on Wall Street, including Sherri Scribner of Deutsche Bank, argued that sales growth would slow down after the massive boon that the iPhone 6 created for demand of the device.

The research on iPhone upgrade intent was echoed by a report published by Canaccord Genuity on Monday morning. The research house said that Apple looked strong heading into the rest of the year, and put a price target of $160, up from $155, on the stock. That price target flies in the face of a rocky stock market driven by Fed decision-making rather than the firm’s performance.

Apple Inc. speeds the upgrade cycle

With the iPhone 6S, Apple   upgrades will likely be driven by two factors. Not all that many iPhone 6 users are going to be buying the new device, but many of those using older versions of the smart phone will  be tempted to get the latest and greatest from Tim Cook’s firm.

At the same time, Apple has added an option for iPhone buyers to pay in installments for an iPhone 6S with no contract and Apple Care. That plan mirrors those offered by wireless firms, though those schemes tend to lock the smart phone to the carrier they’re taken from.

UBS analyst Steven Milunovich reckons that the upgrade plan could convince many more people to upgrade to the latest version of the smart phone. He reckons that means higher EPS and higher sales for the firm from here on out.

The results from the Baird paid survey appear to bear Mr. Milunovich’s theory out. At the very least it’s a direct indication that the launch of the iPhone 6S was a big win for Apple.

Tim Cook and his team have fostered quite a lot of demand for the next Apple smart phone. We’ll have to wait until his firm delivers its third quarter earnings numbers, due toward the end of October, in order to see if Mr. Milunovich, and his peers at Canaccord Genuity and Baird, are right about the growing upgrade intent for the iPhone 6S.

All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar
HTML Snippets Powered By : XYZScripts.com