Amid the speculation surrounding the newest iPhone features, timing, pricing and possible supply constraints, analysts at UBS believe its best to wait until Apple Inc. (NASDAQ:AAPL) actually makes the announcement.
According to UBS analyst Steven Milunovich, most scenarios have Apple exceeding F2018 consensus EPS estimates of $10.50, with upside potential towards $12 if OLED demand is strong and the average selling price reaches north of $700.
“Timing affects quarterly results, but for the full year, demand and mix are most important," Milunovich said in a recent note.
UBS expects the OLED iPhone ships in November at $900 for the 64GB models and $1,000 for 256GB. The firm expects double-digit unit growth in F2018 and single-digit growth in F2019 driven by a growing installed base and the high retention rate that Apple generally possesses.
“We expect a bulge of F15 iPhone 6 owners to upgrade in F18, creating a strong year if not a supercycle,” he added.
Augmented reality is an area where UBS believes Apple can continue to drive long-term revenue growth and “leapfrog competition in offering a superior user experience.”
UBS maintained a Buy rating on Apple with a $170 price target.
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