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Target Price of Apple Inc (NASDAQ:AAPL) Raised To $125 from $115

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By on Market, Technology & Software

A senior analyst at UBS, Steve Milunovich, updated Apple Inc’s (NASDAQ:AAPL) target price to $125 from previously held figures of $115 on the basis of the survey results  that UBS recently conducted.  The survey form was sent out to the customers in the regions of China, Italy, the United Kingdom and the United States. As many as 4,000 customers were surveyed, almost 1000 belonging to each particular country.

According to the report of Steve, the effective processing speed and the brand name of Apple Inc (NASDAQ:AAPL) were enough to make the customers want to buy iPhones, despite the fact that their prices were far higher than the prices of Androids. This preference of customers not only promotes score for the company but it also increases the retention rates.

The results of the survey showed that almost 64 percent of the Chinese customers were planning to buy either iPhone 6 or iPhone 6s in the year 2015.  When asked whether they would prefer iPhone 6s over iPone 6, 53 percent of the surveyed said that they would prefer iPhone 6s.

As for the memory size of the smartphone, 53 percent of the customers were of the opinion that 64 GB size would make the phone even more desirable; around 22 percent voted for 16 GB and 13 percent voted for 128 GB.

One third of the total customers, who were being surveyed and who showed the intention of buying an iPhone within a year, had a Samsung phone.

Perhaps China is the biggest market for Apple Inc (NASDAQ:AAPL), as the retention rate for the company is 84 percent there; that is twice the rate of either Xiaomi or Samsung. The survey further showed that the demand of iPhone 6 can increase to 190 million units by December 2015. Currently, the estimates stand at 170 million. The preference for Apple’s specifications was as follows:

  • Around 48 percent of the customers preferred the brand name of Apple Inc (NASDAQ:AAPL).
  • 41 percent of them liked the phone because of its fast processing speed.
  • 29 percent were of the opinion that the size of the screen has made the new phone more desirable.
  • 26 percent said that the phone’s processor is their reason for choosing the brand.
  • And, 18 percent said that iPhone 6 is a good value for money.

The market analysts are of the opinion that a 64 GB processor can increase the ASP (average selling price) of the company, and it can easily make Apple grab a pretty good portion of market share.

Steve has increased the price target of Apple Inc (NASDAQ:AAPL) without changing the estimates: The analysts based his opinion on the $8.20 EPS of the company for the year 2015.

As for the stocks of Apple Inc (NASDAQ:AAPL), the company started its stocks at $109.38 and closed at $111.25, after hitting the highest figures of $111.43. Apple has a market capitalization of $644.36 billion and a price to earnings ratio of 17.3.

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