apple hike PIPER 305

Interest in an imaginary $1,200 5G iPhone is surprisingly high says analyst Michael Olson.

From a note to clients that landed on my desktop Friday morning:

Conclusion: While still three quarters away, the 5G iPhone’s integration into the investor narrative around AAPL shares is well underway. Our third survey of >1,000 U.S. iPhone owners shows 23% are interested in purchasing a relatively higher ASP ($1,200) 5G iPhone, unchanged from our Sep-19 survey and up from 18% in our Jun-19 survey. We see this as a strong level of interest given limited 5G marketing/chatter to date and the high price point used in our survey. Looking into the coming year, Apple is in the midst of a perfect storm, with the current iPhone appearing to perform at-or-above plan, non-iPhone (especially wearables & services) trending better than expected through the end of FY19 and likely into the holidays, as well as growing anticipation for 5G iPhones coming late in the fiscal year.

Survey details: We surveyed ~1,090 U.S. iPhone owners and asked them if they would upgrade to a 5G iPhone for $1,200. 23% indicated that they would upgrade to a $1,200 5G iPhone next time they upgrade their device. We believe, given the relatively high price point used in our survey and limited marketing of 5G to date, that this is a positive indication.

Results:

apple hike PIPER 305

Click to enlarge.

Maintains Overweight rating, raises price target to $305 from $290.

My take: The subjects in these surveys tend to skew high end. But at least Piper Jaffray is counting heads, which is more than most firms do.

See also: Piper Jaffray: Apple still owns GenZ