Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Apple Installed Base Now Exceeds 1.8 Billion - BofA

Stock Markets May 19, 2022 07:34AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Apple (AAPL) Installed Base Now Exceeds 1.8 Billion - BofA
 
AAPL
-3.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Senad Karaahmetovic

Bank of America analyst Wamsi Mohan cut the price target on Apple (NASDAQ:AAPL) to $200.00 per share from the prior $215.00 to reflect increased macro and supply chain headwinds.

Still, the analyst remains bullish on Apple as BofA’s analysis showed the iPhone installed base is over 1 billion units with an overall installed base estimated at north of 1.8 billion for the entire Apple ecosystem.

“The hardware IB is the platform on which Apple builds and grows its services business. We highlight the following: (1) size of the global iPhone IB of about 1.1bn units at the end of 2021 (about 760mn primary and 320mn in the used iPhone IB), (2) the used iPhone IB has been growing faster than the new iPhone IB albeit off a smaller base (2017-21 CAGR of 17% vs. 3%), and we expect the higher growth rate to continue (2021-26 CAGR of 15% vs. 2%), (3) a larger IB can eventually drive higher consumption of services and sales of incremental devices (halo effect), (4) the iPhone IB in China has been growing faster than other regions, and we expect that to continue, and (5) secondary market growth presents a large services opportunity,” Mohan explained in a note.

As a result, the analyst hiked the F23/F24 iPhone unit estimates to 237mn/230mn from 231mn/222mn, respectively.

Region-wise, China has now caught up with Europe with the country’s installed base expected to grow at 5% CAGR 2021-2026, much faster than 1% and 2% in North America and Europe, respectively.

“Investors have worried of longevity of technology dominance for smartphones (often comparing with Nokia (NYSE:NOK), Blackberry (TSX:BB), Motorola (NYSE:MSI) etc.). Our IB analysis gives us confidence that combination of replacement and new users can drive annual iPhone sales of 230mn units, which combined with a growing services business can drive a premium multiple,” Mohan concluded.

 

Apple Installed Base Now Exceeds 1.8 Billion - BofA
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email