Ahead of Apple’s “Far Out” event on September 7, optimism about Apple’s upcoming release of a number of new products is skyrocketing. Bank of America analyst Wamsi Mohan reiterated the company’s “Buy” rating on Apple stock with a target price of $ 185 in a note to customers.
“In our opinion, the price of the iPhone is the main element for investors, followed by the timing and cadence of the launch and any news on price / bundling,” wrote Bank of America analyst Wamsi Mohan in a new note to the customers.
“In our Apple model we assume that iPhone 14 launches at the same launch prices as iPhone 13,” Mohan wrote. “However, in an inflationary environment, Apple may choose to raise the price of the Pro models (high-end consumer less price sensitive) and leave the low-end models unchanged.”
“If Apple were to raise the prices of the pro models by $ 50,” Mohan added, “we estimate an EPS advantage of $ 0.20. We look at a scenario where Apple raises the prices of the iPhone 14 Pro / Pro Max by $ 50 each. , while lowering the prices of the iPhone 14/14 Max by $ 50. We estimate a benefit of about $ 0.10 if 10 million incremental iPhone units are sold.
Source - database | Page ID - 922