Apple releases $1K iPhone X to juice more revenues from us

Analyst upped its rating for the Apple's market shares, anticipating the Cupertino technology company will report a better profit than expected earnings in 2018.1 min

Apple releases $1K iPhone X to juice more profits

Apple‘s scheduled to kick off the preorders of the iPhone X on October 27 with release date on November 3rd. The premium flagship smartphone that was launched last month will boost the Apple’s profits, according to a Wall Street boutique investment bank that provides financial advisory services.

KeyBanc Capital Markets upped its rating for the Cupertino’s market shares to overweight from field weight, anticipating the technology company will report a better than predicted earnings in 2018.

“Apple’s introduction of iPhone X at a $999 entry price, its increase to iPhone 8/8+ prices, and its change to storage step-up pricing collectively represent a more aggressive strategy to segment its customer base and extract incremental gross profit from its users than we previously expected,” analyst Andy Hargreaves of the KeyBanc Capital Markets noted to their clients on Sunday, October 15.

Apple shares soars 0.9 percent in a premarket session after the report, Hargreaves start off with a $187 price target for Apple stocks shares, representing 19 percent increase to last Friday’s stock market close.

[agg-ad id=”442″ align=”center”][agg-ad id=”438″ align=”left”]”Apple’s most inelastic customers are likely to be the ones who look to purchase the iPhone X first,” he wrote. “Assuming supply of iPhone X improves, this should create a favorable initial mix of iPhone X units that is likely to be favorable to investor sentiment over at least the next few quarters.”

Hargreaves is predicting that the technology giant’s fiscal 2018 year for iPhone average selling retail price point and gross profit margin will be at $760 and 39.5 percent in contrast to the Wall Street solidarity predictions of $725 and 38.6 percent, respectively. As an outcome of this, the analyst elevated his evaluation for the Apple’s fiscal 2018 earnings per share to $11.68 compared with the $11.03 industry average.

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“The potential for Apple to exercise greater pricing power, along with further App Store growth, supports the view of the Company as a franchise with subscription-like qualities rather than a regular hardware business,” the analyst added.

Despite the recent vaporization, the company is still one, if not the best, of the market’s best-performing large-capital stocks this 2017 so far. Apple’s shares have skyrocketed to 36 percent through Friday in comparison to the S&P 500’s 14 percent increase.

Apple’s iPhone X is slated to hit the shelves on November 3rd with a base model retail price starting at $999.

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Ronald Delos Santos
Ronald has been a technology journalist since 2012 and was previously reporting for The Centrio Times. He also covered tech industry news in his first job as a reporter with a local magazine, based in Makati.