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The Results Are In: Survey Says iPhone 7 Isn't The Only Apple Product Getting Attention

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The Results Are In: Survey Says iPhone 7 Isn't The Only Apple Product Getting Attention

Following a survey of more than 6,000 people, RBC Capital’s Amit Daryanani believes Apple Inc. (NASDAQ: AAPL) could surprise investors, in terms of ASP upside, driven by the increased preference for the iPhone 7+ and the ASP being $20 higher than that for the last generation of iPhone.

Daryanani maintained an Outperform rating on the company, while raising the price target from $120 to $125.

Survey Findings

The survey revealed that a mix shift toward the 5.5 inch model had to potential to drive significant ASP upside with 46 percent of the respondents saying that they planned to the larger form factor 5.5 inch iPhone, as compared to 38 percent a year ago.

“We think mix shifts toward the larger form factor should more than offset dilution from storage mix,” Daryanani stated.

Related Link: Nomura Raises Apple's Target To $135, Sees iPhone Units Of 234 Million For 2017

Bodes Well For Apple

The survey also indicated that less than 50 percent of the consumers intended to buy the mid-tier memory model, which the analyst believes is a positive and better than expected, as compared to the 55 percent for the 6S cycle.

“Our survey suggests there could be stability in the iPhone replacement cycle,” the analyst mentioned, while adding that there was a “steady uptick in ancillary products and services.”

In other words, the survey suggested increased interest for both the Apple Pay services and the Watch, and the analyst believes that increased interest in other products and services might represent only a small portion of Apple’s revenue but higher interest was drive higher retention of the iOS installed base.

The revenue and EPS estimates for the September and December quarters have been raised.

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Latest Ratings for AAPL

DateFirmActionFromTo
Apr 2021Morgan StanleyMaintainsOverweight
Mar 2021UBSUpgradesNeutralBuy
Mar 2021Evercore ISI GroupMaintainsOutperform

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