Apple's iPhone Prices May Be Higher Than Anticipated, According To This Survey


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


While Apple Inc (NASDAQ: AAPL) shareholders are on the edge of their seats in anticipation of iPhone 7 sales numbers, CLSA believes the market’s focus may be misguided.

Many Apple traders are watching iPhone unit numbers, but CLSA’s latest China survey reveals that iPhone 7 product mix could provide some surprise upside for the stock.

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According to CLSA, China supply chain checks reveal that consensus average sales price (ASP) expectations of $655 could be extremely conservative. CLSA is calling for ASP of $691 in the December quarter, well above consensus.

“We believe consensus is overly fixated on the SE units at a lower ASP… but it seems to ignore rising mix of the Plus model,” the firm explains.

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While Wall Street is calling for a $36 year-over-year decline in iPhone ASP, CLSA is predicting a decline of only $5 due to the shifting product mix.

CLSA believes ASP, not unit sales, could be the driver of a December quarter revenue and EPS beat for Apple. The firm is calling for EPS of $3.36 on revenue of $75.8 billion, ahead of consensus estimates of $3.18/$74.4 billion.

It certainly doesn’t hurt that rival SAMSUNG ELECTRONIC (OTC: SSNLF)’s Note 7 phone has been a complete disaster.

Apple is expected to report Q3 earnings on October 25.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: Analyst ColorLong IdeasAnalyst RatingsTechTrading IdeasCLSAiPhoneiPhone 7