Gene Munster On Apple's 2018 Outlook

Apple Inc. AAPL hit an all-time high of $177.20 on Monday, but a downgrade from analysts at Nomura sent the stock lower Tuesday.

The Expert

Wall Street analyst-turned-venture capitalist Gene Munster, managing partner at Loup Ventures. 

The Thesis

Apple, like any other company, will have its period of "ebbs and flows," but Apple's longer-term sentiment remains favorable, Munster said as a guest during CNBC's "Squawk Alley" segment Tuesday. 

Part of Apple's favorable growth profile for next year is the services business, which accounts for 15 percent of revenue but is growing at a 20-percent-plus rate, Munster said. He said he expects the iPhone average selling price for at least the next few quarters to be $740, $35 higher than the Street's estimate.

While there will be fluctuations in Apple's business ahead, the only move for Apple's stock is higher, Munster said. 

Separately, Munster said in a brief research report over the weekend that the iPhone X will reach a global supply and demand equilibrium in the middle of January. This implies that Apple's March ending quarter will see a "small bump up" from the December ending quarter.

Price Action

Shares of Apple were trading lower by more than 1 percent Tuesday afternoon.

Related Links:

Optical Stocks In Focus Following Apple's Deal With Finisar

Apple iPhone X Still Hard To Find In Stores, Even As Online Lead Times Improve

Photo courtesy of Apple. 

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorCNBCAnalyst RatingsMediaGene MunsteriPhoneiPhone DemandiPhone XSquawk Alley
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!