Andy Hargreaves at Pacific Crest has upgraded Apple to 'outperform' with a price target of '$635' based on the belief that Apple will release a new 4.7-inch iPhone 6 that is priced $100 above current iPhone pricing.
SAI relays Hargreaves report:
Hargreaves says that Apple consumers are relatively rich, so $100 doesn't mean too much to them. He cites the failure of the iPhone 5C as evidence that Apple's customers don't mind spending an extra $100 for a better product.
Hargreaves doesn't believe that Apple will release two larger models of the iPhone; rather it will stick to just the 4.7-inch model.
Speaking about AAPL, he thinks that the stock could take off based on a new product.
"While many observers have chided Apple for a 'lack of innovation' over the last two years, we do not expect a linear path to commercially successful new product categories," says Hargreaves. "Instead, Apple is likely to choose its opportunities and timing extraordinarily carefully and release new products or services only when it feels it has the best chance to succeed, which does not mean it is not innovative, just that it is not dumb."
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SAI relays Hargreaves report:
Hargreaves says that Apple consumers are relatively rich, so $100 doesn't mean too much to them. He cites the failure of the iPhone 5C as evidence that Apple's customers don't mind spending an extra $100 for a better product.
Hargreaves doesn't believe that Apple will release two larger models of the iPhone; rather it will stick to just the 4.7-inch model.
Speaking about AAPL, he thinks that the stock could take off based on a new product.
"While many observers have chided Apple for a 'lack of innovation' over the last two years, we do not expect a linear path to commercially successful new product categories," says Hargreaves. "Instead, Apple is likely to choose its opportunities and timing extraordinarily carefully and release new products or services only when it feels it has the best chance to succeed, which does not mean it is not innovative, just that it is not dumb."
Please follow iClarified on Twitter, Facebook, or RSS for updates.
Read More