Analysts: Apple will raise the price of iPhone 8, to cope with the excess demand for the new product
28.03.2017 0 Comments
The market is underestimating the prospects for a new iPhone, but Apple is overestimating the prospects in the field of software. This was stated by JP Morgan analyst Rod Hall. According to him, the high cost of iPhone 8 is designed to compensate for the high demand for the new product of Apple.
“When we look at the iPhone, we don’t think people realize how strong will be the new cycle,” notes Hall.
Analysts points out that the flagship model of the iPhone this year will be of 5.85-inch OLED-display “edge to edge”, in which a portion of the surface allocated by “functional area” as a replacement “Home” button available to all Apple smartphones since 2007. JP Morgan believe that Apple is focused on increasing the cost of future iPhone, in order to compensate for the possible shortage of news.
IPhone 7 price starts at $649 and depending on model and storage capacity comes to $969. According to the forecast analysis, production cost “iPhone Pro” for only $65 higher than the iPhone 7. However, the base option for the first time will cost more than $1000.
“We believe that there is great potential for a strong dynamics of the new iPhone. To do this, Apple needs to provide a good product. And we’ve seen a lot of evidence that the product is really good,” adds the analyst.
Hall listed the main features of iPhone Pro:
- Of 5.85-inch OLED display;
- the new camera with the function of postpecherov;
- front 3D scanner with the ability to detect faces and effects
- wireless charging;
- possible failure of the fingerprint scanner;
- glass front and rear panels.
In the software the Apple Hall “not too optimistic”.
“I think it’s quite a complicated part of business, he said. We think there is a lot of potential, but until Apple showed able to earn on it. This does not mean that they will not be able to do this in the future… but still there are a lot of problems.”
Hall has raised the target price of Apple shares from $142 to $165, while the average target company’s stock price — $149,49.