According to analysts, Apple iPhone X expectations are still too high, despite stock pullback. Nicolas Baratte, an analyst from CLSA says iPhone X volume forecasts remain overestimated, regardless of a correction last week.
The company’s stock cut down 2.5 percent from 50 million to 30 million.
Baratte says, “We maintain that 2017 fourth-quarter iPhone X volumes were at 30 to 35 million and we are very skeptical that volumes will increase in the first quarter of 2018.”
However, this still doesn’t change the demand and push-out of the product. He says, “consumers who wanted to get an iPhone X in December 2017 already have it.” Nonetheless, any expectations that forecast first-quarter volume over 35 million units will be too high.
Piper Jaffray restated its overweight rating and $200 price target on the company, following a recent survey of iPhone users. This survey reinforced Michael Olson’s expectation that a significant number of new models of iPhone will be sold in the fiscal year of 2018. This increases their confidence—”Our iPhone average selling price assumption of $720, therefore, appears achievable, increasing our confidence in revenue and earnings per share estimates.”
However, if the volume is problematic for Apple in the new year, then both Olson and Baratte agree that the price for the iPhone X should be cut. These cuts could provide a cheaper option for those who are looking for more screen space on their smartphone.
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