Royal Bank of Canada gives Apple's price target a $4 nudge

From a note to clients by RBC analyst Amit Daryanani that landed in my inbox Thursday:

Our recent survey work suggests there remains sizable pent up demand and excitement around the upcoming iPhone launch, which combined with the 700M+ iPhone install base with extended replacement cycles should yield in a supercycle for AAPL this fall.

Some of the highlights from our survey work were: 1) 2/3rd of the respondents would consider purchasing an iPhone, 2) Wireless charging is considered to be the most attractive feature and 3) ~60% of the folks that intend to upgrade the phone currently own iPhone 6 or 6s gen models.

Net/Net: We think AAPL remains ontrack to become the first company to achieve $1.0 trillion market cap (refer to 5/22 note for details) and AAPL should sustain an upside bias through and potentially beyond iPhone product launch this September.

Daryanani maintains his Outperform rating and  raises his price target to $180 from $176.

My take: Wireless charging is a curious choice for most attractive feature.

2 Comments

  1. John Butt said:
    I know I am only a sample of one, but my new Hyundai Ioniq all electric has a wireless charger built into the exact right place for the phone – makes wireless charging very attractive.
    I am also on a 6S with battery issues after the battery discharge debacle last year.
    Bit of a no brainer just on those points for me

    0
    August 31, 2017
  2. Ken Cheng said:
    My 2016 Chevy Volt has a wireless Qi charger built into a slot inside the armrest, but no one uses it since if you use it, you can’t use Apple CarPlay. Also, placement of the phone in the slot for the charger is supposedly small and finicky, might not work with your phone cover. Lastly, on the Volt, the armrest cover doesn’t close when the iPhone is in the wireless charger slot! Bad design. I suppose if someone in my car had an iPhone with wireless charging they could use the slot, but the driver wouldn’t.

    0
    September 1, 2017

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