🤯 Picked by our AI, this stock rallied more than Nvidia this month, yielding 94% since MarchSee the stock

BofA maintains Buy on Apple stock, reiterates $225 price target

EditorAhmed Abdulazez Abdulkadir
Published 2024-03-12, 09:58 a/m
© Reuters.
AAPL
-

On Tuesday, BofA Securities confirmed its positive stance on Apple Inc. (NASDAQ:AAPL), maintaining a Buy rating with a steady price target of $225.00. The firm's analysis highlighted Apple's pricing strategy evolution since the introduction of the first iPhone in 2007, with initial prices set at $499 for the 4GB model and $599 for the 8GB model.

Today, Apple's iPhone offerings span a wide price range, from $429 to $1,599, catering to various consumer segments.

The firm observed that Apple has consistently launched new iPhone models, including the Pro/Pro Max versions, to target the premium market. Concurrently, prices for previous models are typically reduced by about $100 with each new release. This strategy, coupled with installment plans from Apple and carriers, has contributed to the iPhone's installed base reaching a record 1.2 billion in 2023.

Despite experiencing slower unit sales, Apple has effectively shifted its sales mix towards higher-value units. This trend is expected to persist and could help mitigate potential unit sales weaknesses, particularly in China. The firm also noted Apple's dominance in the high-end market, maintaining a market share of over 90% in the $1,000 and above price band for the past three years.

The analyst's endorsement of Apple's stock is further supported by the anticipation of a multi-year iPhone cycle propelled by next-generation AI technology, robust services growth, and the potential for margin expansion. These factors collectively underpin the firm's confidence in Apple's continued success and justify the reiterated Buy rating.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.