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Apple Upgrades Alone Should Lead To 11% YoY iPhone Sales Growth In The First Half Of 2017

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Apple Upgrades Alone Should Lead To 11% YoY iPhone Sales Growth In The First Half Of 2017

A U.S. survey across demographics highlighted solid upgrade appetite for Apple Inc.’s (NASDAQ: AAPL) iPhone 7 and 7 Plus in the first half of 2017, Bank of America Merrill Lynch’s Wamsi Mohan said in a report. He reiterated a Buy rating on the company, with a price objective of $125.

BofA’s proprietary survey indicated that several phones would be eligible for upgrade in the first half of 2017 and that “attach rates for other products/services remain healthy." The latest survey results were consistent with the results of a survey conducted in February which indicated that a large segment of the installed base was await the launch of the iPhone 7.

Related Link: All The Recent iPhone 7 Comments In One Place

Healthy Growth In Units

Upgrades alone could drive U.S. iPhone units up 11 percent year-over-year, Mohan commented. He estimated that 33 percent of the current installed base was currently eligible for upgrade, while an additional 20 percent would become eligible in the first half of next year. This translated to 53 percent of the installed base being eligible for upgrade in the first half.

The analyst expects the upgrades alone to drive iPhone sales of 34 million units in the US in the first half of 2017, representing 11 percent year-over-year growth, even without taking into account any potential share gains. This leaves room for the iPhone 7 and 7 Plus to outsell the iPhone 6 and 6 Plus, which sold 36 million units in the first half of 2015.

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Latest Ratings for AAPL

DateFirmActionFromTo
Aug 2019Initiates Coverage OnEqual-Weight
Jul 2019MaintainsHold
Jul 2019MaintainsBuy

View More Analyst Ratings for AAPL
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