Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.
Following the release of new Apple Inc. (NASDAQ:AAPL) products, Bank of America Merrill Lynch tackled the apparent discrepancy between growth in the iPhone installed base versus Apple's unit growth.
The Analyst
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Analyst Wamsi Mohan maintained a Neutral rating on Apple with a $220 price objective.
The Thesis
Installed base data serves as a key indicator for Apple's growth, Mohan said in a Tuesday note. (See his track record here.)
The analyst pointed to the following factors:
- The size of the global iPhone installed base and its compound annual growth rate over the past two years.
- Future growth in sales.
- An increase in installed base, which should drive serves and sales of incremental devices.
- The expansion of replacement cycle in direct response to installed base growth.
- Secondary market growth, which presents a significant services opportunity.
“As growth migrates to the secondary market, which we view as more price conscious consumers, we view a lower initial services attach. We estimate only 10-20-percent of the 1.5-billion overall installed base is paying for services," the analyst said.
Want Private Access to Benzinga Analyst?
Check out the latest strategies our team of experts are using every week so that you can always adapt to the market like the pros!—Get FULL Access to This Week's Webinar Here.
"The positive is that there is large room for upside, but the negative is that the secondary market will likely take a long time to change lower spending patterns.”
China’s contribution remains crucial, as the country's iPhone installed base has grown at a 7-percent CAGR year-over-year, Mohan said.
At the end of this year, the Chinese iPhone installed base will nearly rival that of Europe, he said: "This can likely be explained by the longer replacement cycle in China."
Price Action
Apple shares were down 2.56 percent at $181.10 at time of publication Tuesday.
Related Links:
Apple's Volatile Ride Continues Amid Reports Of Production Cuts For New iPhone Models
Time For Apple's Stock To Enter A 'Period Of Digestion,' Guggenheim Says
Photo courtesy of Apple.
Crypto Whales Are Loading Up — Are You?
New research shows the biggest crypto buyers are back. And this time? They could hold for the possibility that Bitcoin will surpass $100,000 in 2024. You don’t want to miss the next massive crypto bull run like we saw in 2020 and 2021. To know exactly what’s going on and what to buy… Get Access To Benzinga’s Best Crypto Research and Investments For Only $1.