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iPhone sales will continue to grow despite market pessimism says Evercore ISI

AuthorSam Boughedda
Published 05/09/2024, 06:52 AM
© Reuters
AAPL
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Despite concerns about the iPhone's growth potential, Evercore ISI analysts remain bullish on Apple's flagship product, citing three key drivers for mid-single-digit growth in the future.

According to Evercore ISI, emerging markets outside of China present a significant growth opportunity for Apple. The note highlights the preference for iPhones in developing countries, where the high-end smartphone market has doubled in the last two years. If this trend continues, it could add substantial revenue to Apple's iPhone total addressable market (TAM).

Additionally, Apple's ability to increase iPhone average selling prices (ASPs) and drive customers towards higher-priced models like the Pro and Pro Max further contributes to revenue growth.

Furthermore, innovation, particularly in the form of AI-enabled features, could potentially shorten the iPhone replacement cycle, currently at around 41 months. Evercore ISI estimates that for every one month reduction in the replacement cycle, it could add significant revenue and earnings per share.

"We think 'AI-enabled' iPhone over time could be a catalyst," said Evercore. 

Evercore ISI advises investors not to underestimate the iPhone's growth potential, maintaining an Outperform rating and a target price of $220 on Apple shares (NASDAQ:AAPL).

Evercore stated, "Investors should not underestimate the ability of the iPhone to continue to deliver growth over the next five years."

Latest comments

I think id perfer a good oil stock if im going for 5Percent growth. They have less than half the PE price and pay great dividends. and Unlike aapl they dont have to come up with a product thats DESIGNED to be worthlesss in 5 years in order to get me to keep buying it. And they dont have to worry about me just deciding im not going to buy anymore gasoline or oil this year. ill just use last years again.
"mid single digit growth: would be the same as "It still has a heartbeat" if we were talking about any other company in this market. And stocks with 5percent growth sell for a PE of ten or less, and have triple the dividend.
I am still using a 2020 iPhone that needed to be repaired before it became obsolete.
So stupid to think why developing countries wouldn't buy more China phones than Apple.
Never used apple product.. Don't plan either
Ai-powerrd, Ai-enabled :) Obce you see this, you have to understand, that this stupid bustard writes to fool you
Growing after a 15%+ drop isn't growing, it's called recovering
India, yes. The only hope for Apple. China is pivoting to homegrown. US and Europe are saturated and not willing to upgrade in mass. Other markets sontatter a lot.
Apple should not underestimates people from developing countries which have low incomes so as to afford changing their iphones every 2/3 years
Manipulative Evercore ISI will continue to deceptively 🐂💩IPhone growth despite market pessimism about the sales......
iPhone sales are down because people can’t afford the upgrade. Which is a camera. What else can you do to a phone
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