Why Ap­ple gets higher mar­ket share and a higher an­a­lyst price tar­get

Financial Mirror (Cyprus) - - FRONT PAGE -

Com­ing off a strong key­note pre­sen­ta­tion, Ap­ple Inc. (NAS­DAQ: AAPL) is ready to take the mar­ket by storm with its new pro­mo­tions. De­spite the mar­ket sell-off in Au­gust, Ap­ple has weath­ered it well and now has plans that will fur­ther help it take con­trol and grow its mar­ket share in the high-end smart phone mar­ket. Canac­cord Ge­nu­ity re­it­er­ated a Buy rat­ing and raised its price tar­get to $160 from $155, im­ply­ing an up­side of 40% from cur­rent prices. At the same time, the firm in­creased its cal­en­dar 2015 and 2016 earn­ings per share (EPS) es­ti­mates to $9.17 and $10.22 from $9.01 and $9.64, re­spec­tively.

This rat­ing is based on the firm’s sur­vey work and anal­y­sis of lead­ing car­rier store traf­fic and price pro­mo­tions, and it an­tic­i­pates Ap­ple will main­tain very strong share of the pre­mium tier smart­phone mar­ket. In fact, Canac­cord Ge­nu­ity be­lieves the iPhone 6s prod­ucts should en­able Ap­ple to con­tinue to post strong sales and high-end smart­phone mar­ket share gains, as it be­lieves the iPhone 6/6s Plus smart­phones gen­er­ated very strong re­place­ment sales from ex­ist­ing iPhone con­sumers who slowed the pace of iPhone up­grade pur­chases dur­ing the rel­a­tively dis­ap­point­ing iPhone 5 and 5s prod­uct cy­cles.

Another pre­dic­tion the firm has is that the new Ap­ple in­stal­ment plan pro­grammes com­bined with sim­i­lar to more ag­gres­sively priced in­stal­ment pro­grammes from lead­ing car­ri­ers will im­prove the rate of iPhone up­grade sales to the grow­ing in­stalled base of iPhone users. In fact, with only 27% of the iPhone in­stalled base hav­ing up­graded to the iPhone 6/6 Plus de­vices by the end of the fis­cal third quar­ter of 2015, Canac­cord Ge­nu­ity an­tic­i­pates con­tin­ued strong re­place­ment sales through the 2015 cal­en­dar year and be­yond.

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