Apple's Winning Strategy - Analyst Highlights How Pricing and Services Fuel Market Growth
Portfolio Pulse from Anusuya Lahiri
B of A Securities analyst Wamsi Mohan reiterated a Buy rating on Apple Inc (NASDAQ:AAPL) with a $225 price target, highlighting Apple's effective pricing strategy and services as key drivers of market growth. Apple has expanded its iPhone price range significantly since 2007, catering to both premium and lower segments, which has helped grow its installed base to 1.2 billion in 2023. Despite a decline in unit sales, particularly in China, Apple has increased its market share and dominates the premium segment. The used iPhone market also contributes to Apple's ecosystem, with a notable increase in services revenue per device from $50.59 in 2019 to $73.01 in 2023. Mohan projects Apple's fiscal 2024 revenue at $396.24 billion, above the consensus of $388.05 billion.
March 12, 2024 | 6:52 pm
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B of A Securities analyst Wamsi Mohan reiterates a Buy rating on Apple Inc with a $225 price target, emphasizing the company's successful pricing strategy and services growth. Apple's iPhone price range expansion and market share increase, along with a rise in services revenue per device, underline its strong market position and revenue growth potential.
The positive reiteration by B of A Securities analyst Wamsi Mohan, along with a high price target of $225, reflects strong confidence in Apple's market strategy and growth potential. The expansion of the iPhone's price range to cater to various segments, dominance in the premium market, and significant increase in services revenue per device are key factors likely to positively impact investor sentiment and Apple's stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100