Apple Stock Surges as iPhone Upgrade Cycle Heats Up
A new survey by Evercore ISI suggests that Apple's iPhone upgrade cycle may be stronger than expected, with an average selling price (ASP) of $1,374, a nearly 28% increase from previous years.
The survey of over 4,000 people found that 53% plan to buy an iPhone 18 Pro or Pro Max, compared to the historical average of 51%. Additionally, 32% of respondents said they intend to purchase the Pro Max, up from 29% last year.
The survey also indicates that more existing Apple users are planning to upgrade their phones, with 61% saying they will buy an iPhone this year, compared to 59% last year and a long-term average of 45%. This could lead to increased revenue for Apple due to higher unit demand and prices.
Evercore's five-star analyst Amit Daryanani has raised his price target for Apple stock to $380 from $365, citing the potential for Apple to surprise to the upside compared to Wall Street revenue expectations.