UBS: Apple Watch Demand Has Only Just Begun
Apple Inc (NASDAQ: AAPL)’s Watch is still in the early innings of its potential, according to UBS.
The Analyst
UBS analyst Timothy Arcuri maintains a Buy rating on Apple with a $250 price target.
The Thesis
The Apple Watch continues to gain traction, with unit volumes steadily increasing, Arcuri said in a Wednesday note. (See his track record here.)
Higher Apple Watch prices for the latest Series 4 models could add 100 basis points of incremental revenue growth in 2019 for the entire company, the analyst said.
The Apple Watch alone could account for up to 5 percent of revenues in 2019, which is the equivalent of 15 million more iPhone units, Arcuri said. Data suggest that consumer interest is meaningfully higher in Japan and Hong Kong compared to last year and is slightly higher in the U.S., France and Great Britain, he said.
“Availability data suggests wait times have not changed materially since the launch. In comparison, lead times declined very quickly last year after the Watch Series 3 launch. Availability data combined with increased interest level suggest healthy demand trends for Watch."
UBS Evidence Lab surveys indicate that over 50 percent of respondents are still unlikely to purchase a smartwatch, meaning the pool of potential future buyers remains deep, Arcuri said.
Price Action
Apple shares closed 2.83 percent higher Thursday at $219.34.
Related Links:
Apple Q4 Earnings Preview: New iPhones, China, Services And More
Gene Munster: Service At The Core Of Apple
Photo courtesy of Apple.
Latest Ratings for AAPL
Date | Firm | Action | From | To |
---|---|---|---|---|
Jan 2019 | Bank of America | Reiterates | Neutral | Neutral |
Jan 2019 | Citigroup | Reiterates | Buy | Buy |
Jan 2019 | Morgan Stanley | Maintains | Overweight | Overweight |
View More Analyst Ratings for AAPL
View the Latest Analyst Ratings
Posted-In: Apple Watch Timothy Arcuri UBSAnalyst Color Reiteration Analyst Ratings Tech Best of Benzinga
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.