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Apple Raising Prices for iPhone Pro Models Would be a 'Notable Tailwind' - Analyst

Published 25/08/2022, 14:08
© Reuters.
AAPL
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By Senad Karaahmetovic

Apple announced yesterday that its annual iPhone event, titled “Far out,” will take place on September 7th.

Apple is widely expected to release four new iPhone models for its new iPhone 14 lineup, while some analysts are speculating that the Cupertino-based giant could also present a new Apple Watch and AirPods.

An Evercore ISI analyst notes that this year’s event is being held a week earlier than in 2021, which means Apple will extract an extra week of iPhone sales for this quarter.

“We don’t expect many changes to the standard model and it will likely retain the same A15 chip used in the iPhone 13, but we could see some more material alterations to the Pro lineup,” the analyst said in a client note.

New features for Pro Models could allow Apple to justify a price increase, which the analyst argues would present a “notable tailwind for iPhone revenue.”

“The main point for investors here is likely the potential for ASP uplift with the iPhone, which could drive upside vs. current expectations. New Watch and AirPods would also help kickstart a return to growth for Wearables,” the analyst added.

He has a $185 per share price target on Outperform-rated Apple shares (NASDAQ:AAPL).

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