TECH - Apple Eyes New Growth With Extended Smartphone Replacement Cycle and Strategic Pricing: Analyst | Benzinga
Apple Inc (NASDAQ:AAPL) shares are trading higher after Needham analyst Laura Martin maintained a Buy rating and a $220 price target. The stock price gained after the re-rating.
Martin summarized recent channel checks related to Apple. Insights from several ex-employees of Apple are summarized first, followed by insights from a key competitor.
The most important valuation-related takeaways from Martin’s conversations included the fact that the smartphone replacement cycle is now closer to 36-40 months, up from about 24-30 months pre-COVID.
Some noted that Apple would raise prices on high-end smartphones and use that excess pricing to subsidize lower-cost iPhones to attract new consumers into the Apple ecosystem.
This is because high-end smartphone customers are typically less price-sensitive, and Apple needs to reach a ...