Apple has tripled its order of 3D sensing components for the fall of 2018.
From a note to clients by Piper Jaffray analyst Michael Olson that landed in my inbox Thursday:
Beyond the March & June quarters, we anticipate a wider array devices similar to iPhone X will launch in Fall-18. While we have no direct knowledge of Apple’s iPhone plans for next year, 3D sensing component suppliers are being told to generate volume for the Fall-18 launch that is 3x what was made for iPhone X this year. We expect a lower priced OLED option (likely the current iPhone X with a price cut) and we wouldn’t be surprised to see a “plus” OLED model in ’18, which tests the upper bounds of what buyers are willing to pay for an iPhone and provides an option for those looking for more real estate in their iPhone screen. This would result in three OLED models – iPhone X, iPhone Xs and iPhone Xs Plus. As options for the “X” generation iPhone expand, the “shots on goal” for upgrading increases.
Reiterates Overweight rating and $200 price target.
My take: Olson flirts with a $212 price target, which is where his model takes him if iPhone ASPs increase. He ought to just go there.