The price of Apple shares have been in a slump all of 2016, but 2017 is shaping up to be an explosive year for AAPL.
Thanks to pent up demand from iPhone users for a big upgrade that probably won’t come this year, Apple is poised to have its biggest year ever when it launches the iPhone 7s, according to Cowen & Co’s financial analyst Timothy Arcuri who claims it pays to get in right now and wait out the iPhone 7 slump.
In a note to investors this morning, Arcuri set a $125 target price on AAPL shares after new analysis showed the company is on the cusp of huge growth among its iPhone users with a device that is two years or older.
“Assuming iPhone 7/7+ units are about flat with iPhone 6S/6S+, the portion of the total active iPhone installed base that is >2yrs old is set to hockey-stick from ~33 percent today (a number that has been consistent for ~6Qs) to ~43 percent in the next 4-5Qs,” writes Arcuri. “This represents growth in >2yr old units of ~60-70MM by next June.”
Put more simply, Apple’s entire iPhone user base is going to get bigger this year, and those users will be eager for the big upgrades of 2017’s iPhone that could include a new form factor and OLED screen.
This of course implies that people will be willing to wait another year before upgrading to the next iPhone. If the iPhone 7 is as snooze-worthy as early rumors have suggested, then Google and Samsung might be able to steal a huge chunk of iPhone-switchers.
Buster Hein is a freelance writer who lives in Phoenix, Arizona. Twitter: @bst3r.
4 responses to “Apple stock might be ready to explode”
“If the iPhone 7 is as snooze-worthy as early rumors have suggested, then Google and Samsung might be able to steal a huge chunk of iPhone-switchers.”
And how will Samsung/Google’s next device not be any more “snooze-worthy” than the iPhone 7S? Will Google introduce even more incredible ways to track your digital persona to bombard you with even more advertising? Will Samsung increase the size of all its devices’ screens by 1 inch?
The bloggers think that Google’s Ara Lego-phone is going to sell in the tens of millions of units and steal all of Apple’s iPhone customers away. Why? Because they think some cheap smartphone with interchangeable parts are what consumers are asking for. If I had a dime for every Google smartphone that was supposed to put Apple out of business, I’d be a gazillionaire by now. It’s just freaking stupid. Mercedes-Benz is still in business despite Toyota selling cheap and dependable cars. That’s because not everyone wants or aspires to owning a Toyota. The bloggers just don’t get that. All they think is cheap Android smartphones with lots of useless features that consumers don’t really give a damn about are going to replace all iPhones. The geniuses believe they can predict the Lego-phone being successful and the next iPhone being a failure by just sniffing the air. All they really smell is a load of BS.
Counter-point: It might not be.
Don’t count on Apple’s share price going up and take good long look at what happened to Apple back in late 2012 after a bunch of analysts started claiming Apple’s share price was heading up. All trusting Apple investors got was a heap of pain. Apple can’t be trusted to deliver any gains to shareholders. Tim Cook is running the value of Apple into the ground. Every other major tech stock will see gains and Apple will continue to sink. Tim Cook seems to spend more time on outside issues than dealing with Apple’s revenue losses. Everything Amazon does is praised while everything Apple does is damned. Apple shareholders can’t possibly win with so much going against them. The retards have all these negative predictions about Apple. One would think these prophets are a dime a dozen.