Analyst: Average Cost of iPhone to Significantly Rise in 2018

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Posted April 21, 2017 at 2:51pm by iClarified

The average selling price of the iPhone will significantly rise in 2018, according to Morgan Stanley analyst Katy Huberty.

In a new research note distributed on Thursday, Huberty estimates the average cost of the iPhone will be $753 in 2018, that's quite a bit higher than the consensus of $675. It's believed that Apple plans to launch a more expensive 'iPhone 8' this year which could have a "more power efficient OLED display, wireless charging, 3D sensors, and a new curved form factor."

Another factor contributing to the higher average selling price is the increase in iPhone Plus models being sold. Those models demand a $100 premium for their larger displays.

Huberty also notes that Apple has a "clear path to supercycle" during which a larger than normal portion of Apple customers choose to upgrade their devices.

The "supercycle [is] not reflected in consensus iPhone shipments," Huberty writes. "Our upgrade analysis, which covers regions that represented 96% of iPhone shipments in CY16, points to base case of 260M (top down) to 264M (bottom up) demand during the FY18 Supercycle and implies at least 7% upside to current consensus forecast of 242M."

Morgan Stanley has raised its Apple price target to $161 from $154.

[via Business Insider]

Analyst: Average Cost of iPhone to Significantly Rise in 2018

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Chip - April 21, 2017 at 4:00pm

Its up to the people really. People are suckered into buying the latest then maybe so. I see no huge deal from one year to another. I would go far too say also that 3 years later and there's nothing to marvel about. I do like some phones but i will put some on hold to every 5 years i will update and that's only if i feel the apps that i use are bottlenecking with the phone. My 5s i feel no difference in performance. But i do like the larger screen and force touch. As for the camera the only real reason i buy the phone is good enough on the 6s. Side by side with the 7 $1000 dollars isn't worth it 8s maybe but i bet the 9s shoukd be a decent performer. The 7s release is just around the corner. Hahaha

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matrixmaniac - April 21, 2017 at 2:59pm

it may well do so, but without me!