6 Important Questions Apple Investors Should Be Asking

Toni SacconaghiApple Inc.AAPL

1. How High Can Apple's Stock Go?

According to the analyst, the full potential of the iPhone 8 super cycle isn't fully priced in to Apple's stock today, and investors are encouraged to either revisit their Apple position if it hits $172 per share and/or when the iPhone 8 officially launches later this year.

2. What Is Apple's Stock Outlook Over The Longer Term

3. Is The iPhone On Track For A September Release?

The analyst acknowledged that no one knows for certain if the iPhone 8 will be delayed, but so long as units begin shipping by mid-November it might not make any difference.

4. What's Going On In China?

5. What Impact Will The Dispute With Qualcomm Have On Apple?

Apple's ongoing dispute with QUALCOMM, Inc. QCOM is "more about principle than margins." However, the likelihood of Qualcomm responding is "modest" but does have the potential to have a "significant impact" on Apple's business.

6. Does Apple Have Any M&A Plans?

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Sacconaghi doesn't believe Apple should be a "core holding" in a portfolio unless it can successfully transition from hardware offerings to more of a subscription-based model. The analyst might change his mind if the company can demonstrate a product or service that would be big enough to offset any potential iPhone declines in the future.

Sacconaghi noted that data points in China indicate Apple is seeing some share loss but demand for the high-end iPhone is consistent with non-iPhone 6/6S cycles. But the analyst also sees the potential for Chinese consumers holding out the longest for a new iPhone, which could imply the iPhone 8 cycle could be "very significant."

Finally, the analyst said it is "tough to handicap" what (if any) M&A plans Apple has but as has been historically the case, Apple is "more likely" to seek out smaller deals and licenses.