There’s pent up demand for the iPhone 8, say analysts. Here’s what that means for Apple
New analyst notes from Citi and Instinet suggest that there is a cumulative consumer demand for Apple iPhone 8, which is expected to begin this fall.
Demand for Apple’s new, unannounced smartphone could hurt sales of the iPhone 7 this year in the months before the iPhone’s next release, the companies said.
“United States telecoms indicate that the rate update rate have not slowed iPhone 8,” Nomura Instinet Wednesday said.
The company added that “assertive promotions” iPhone 8 and the “rich mix” of the iPhone 8s models also increase the average selling price of Apple iPhones. Leading Jeffrey Kvaal Instinet is:
“A coffee bar offers a lot of avenues for actions.” Instinet has a purchase recommendation and a target price of $ 165 for Apple.
A note from Citi analyst Jim Suva tells a similar story, but is a bit more cautious.
Suva said that Apple CEO Tim Cook will “respond to a sudden drop in a seasonal problem in the iPhone application, as customers expect a major product launch, which usually occurs in September.”
However, Suva supports some of the volatility before the launch of the iPhone 8 could “create a particularly attractive entry point in the coming months.”
“We believe that Apple could return to sustainable growth after the iPhone 8,” he added.
Citi warns that it still believes that the massive amounts of iPhone 8 of the highest class will be available in October or November, which will lead to delays in manufacturing problems that combines the iPhone 8 fingerprint reader with the screen.
Citi will describe several catalysts, including opportunities in the booming service sector of Apple and the potential benefits of potential President Donald Trump to reduce the rate of repatriation tax.
Citi has a buy recommendation with a target price of $ 160 on Apple.