On the occasion of the majority of Wall Street analysts optimistic about the iPhone X, Investment Company KeyBanc analyst Andy Hargreaves holds another point of view.
Hargreaves said in a report that the price of the iPhone X is "substantial increase that seems justifiable only for relatively rich people who care deeply about the appearance of their phone." iPhone X is by far the most expressive iPhone in history, compare to the same period's iPhone 8, the price tag is up about $300.
Hagrid's' view is the opposite of most bullish peers. For example, Drexel Hamilton's Brian White says that: "Apple took the iPhone franchise to a whole new level with the iPhone X, pushing the company deep into the ultra-luxury smartphone market with the highest priced iPhone in the company's history.
"The lack of compelling features in the iPhone X also raises longer-term concerns about Apple's pricing power," he wrote. "The iPhone X suggests compelling new features may be difficult to come by going forward, which could imply a period of elongating average holding periods and falling ASPs after a peak in FY18."
That’s analyst speak that means people might not buy Apple’s latest phones in the future, as they instead just stick with the iPhones that they already have. Many analysts have been highlighting the potential for a “super cycle” after the latest updates to Apple’s key product, thanks in part to the record number of older-model iPhones in use.
The analyst appears to be more excited for the Apple Watch 3 than the iPhone X. In other words, the improvements to the Apple Watch 3 will be compelling enough to drive incremental demand and fuel strong growth in units sold beyond the fiscal 2018 cycle, Hargreaves added.
But to be sure, Apple retains fierce brand loyalty as well as a strong hold on consumers through "network effects, content lock-up, and learned experience with iOS," Hargreaves acknowledged, an environment consumers would be hard-pressed to leave.
Via CNBC And MarketWatch, Image Via JailbreakGuides And Kotaku Australia
Hargreaves said in a report that the price of the iPhone X is "substantial increase that seems justifiable only for relatively rich people who care deeply about the appearance of their phone." iPhone X is by far the most expressive iPhone in history, compare to the same period's iPhone 8, the price tag is up about $300.
Hagrid's' view is the opposite of most bullish peers. For example, Drexel Hamilton's Brian White says that: "Apple took the iPhone franchise to a whole new level with the iPhone X, pushing the company deep into the ultra-luxury smartphone market with the highest priced iPhone in the company's history.
"The lack of compelling features in the iPhone X also raises longer-term concerns about Apple's pricing power," he wrote. "The iPhone X suggests compelling new features may be difficult to come by going forward, which could imply a period of elongating average holding periods and falling ASPs after a peak in FY18."
That’s analyst speak that means people might not buy Apple’s latest phones in the future, as they instead just stick with the iPhones that they already have. Many analysts have been highlighting the potential for a “super cycle” after the latest updates to Apple’s key product, thanks in part to the record number of older-model iPhones in use.
The analyst appears to be more excited for the Apple Watch 3 than the iPhone X. In other words, the improvements to the Apple Watch 3 will be compelling enough to drive incremental demand and fuel strong growth in units sold beyond the fiscal 2018 cycle, Hargreaves added.
But to be sure, Apple retains fierce brand loyalty as well as a strong hold on consumers through "network effects, content lock-up, and learned experience with iOS," Hargreaves acknowledged, an environment consumers would be hard-pressed to leave.
Via CNBC And MarketWatch, Image Via JailbreakGuides And Kotaku Australia
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