The Allure Of Apple's New iPhone Isn't Facial Recognition

Baird analysts turned incrementally bullish on Apple Inc. AAPL after conducting a proprietary survey. The firm's William Power maintains an Outperform rating on Apple's stock with a price target lifted from $172 to $175.

One of the most notable findings from the survey is the fact that facial recognition isn't the most appealing feature of the new iPhone. In fact, 46 percent of respondents said that a stronger battery is the most important feature they're looking for in a phone. This is followed by 19 percent who prioritize an upgraded camera and 17 percent for wireless charging.

Overall, the survey found that interest for the iPhone 8 and iPhone X are both "strong." Encouragingly, demand is skewing toward newer models than in the past, which should boost the iPhone average selling price (ASP) from $665 to $691 and Apple's earnings per share from $9.85 to $10.24.

Here are some other findings from the analyst's survey:

• Within the next three months, 21 percent of respondents plan on buying a smartphone which is in-line with prior years.
• Among those who plan on buying a smartphone, 58 percent want an iPhone which is above the historical range of 45 to 55 percent.
• Seven-seven percent of those who want to buy an iPhone will buy either the iPhone 8 or iPhone X versus a historical average of slightly below 70 percent.

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