Apple Stock News: Credit Suisse Trusts New iPhone 8 Production Numbers

Apple Stock News

For the latest Apple Stock News, AAPL closed at $145.16 on Wednesday, June 14th, 2017. It had a loss of 0.98% from its previous close of $147.50 per share.

Apple Stock News

The Swiss financial services firm Credit Suisse reaffirmed its strong belief in Apple (AAPL) stock. This occurred after learning that AAPL will increase its iPhone 8 production.

Previously, Apple planned on making about 100 million units of the new iPhone. But now, production is expected to reach 112 million units. Also, according to Credit Suisse’s Asia research team, total iPhone production during June-December 2017 will increase from 145 to 156 million units. This will bring the new yearly production level from 229 to 241 million iPhone units assembled.

Some worry that the iPhone 8, also known as iPhone X, will prove less popular than previous iPhones because of the rumored high selling price. However, Credit Suisse analyst Kulbinder Garcha remains optimistic for a significant rise in Apple’s stock. In a note to a client on Wednesday, Garcha wrote, “we remain convinced that the iPhone 8 product cycle will be significant in terms of driving multiyear unit growth, and we maintain our conviction on Apple’s ability to introduce new higher pricing tiers with an improved mix”.

Additional Credit Suisse analysts reconfirmed their belief in Apple and the iPhone 8. They believe the increased production estimates and Apple’s increasing Services business will offset the iPhone 8’s high manufacturing costs. “Given its affluent user base, a significant feature upgrade, limited price elasticity shown so far, as well as Samsung’s higher pricing points of the S8 devices, we believe our ASP [average selling price] assumptions could prove conservative.”

Keep checking back for more news regarding AAPL. For Full AAPL forecasts and investment advice by our state of the art algorithm click here.

 

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