This year’s iPhone refresh from Apple is one that is expected to help the company’s revenues surge to a new all-time high in fiscal 2018. While that may not be surprising to many, a lot of investors probably don’t realize how this growth is likely to be achieved.
Additionally, while the company’s top line is expected to accelerate quite a bit, how many people realize that Apple may rival many key growth firms over the next year?
The iPhone X starting at $999 will obviously be a big reason for the jump in ASPs, but don’t forget that Apple also raised prices from the iPhone 7 to its 8 counterparts.
There will be a slight headwind from Apple selling an extra legacy line, the 6s this time around, as well as a potential increase in SE sales if the company introduces a second edition in Spring 2018.
Apple is doing a pretty good job of setting the stage as to whether it can make its case to Wall Street that it can be a $1 trillion company.
Apple shares once again rose on Friday, up more than 3% and setting the company at a market cap of $842 billion.
iPhone has always been a premium product something which is a luxury to use and has come back with unexpected features by beating up the expectations of its customers.
In fact, it has raised the expectations and the standards such that every time it launches something, there has to be something unique about.
It’s launched a portfolio of other devices like the Air Pods, as well as some in the hopper like the Home Pod, but the story on both of those have yet to play out. It’s also tried to pitch its services business hard to Wall Street as an additional incremental line that’s able to grow methodically sitting on top of its product base’s.
The iPhone has done really well in the 3rd Quarter. It’s time to see whether it is able to drive as much as the same in the 4th Quarter of this year as well with a big bang.