Needham & Company analyst, Charlie Wolf, is raising his target price for Apple’s stock from US$280 up to $375 thanks to iPad and Mac sales that are much stronger than anticipated. Mr. Wolf also noted that iPhone sales are on track to 40 million units this year, according to TheStreet.
“The upgrade cycle of iPhone owners appears to be occurring much faster than we previously assumed,” he said. “The faster upgrade cycle in part reflects AT&T’s liberal upgrade activation policy, in which the company is waving its early termination fee for most iPhone subscribers.”
That faster upgrade cycle means customers are upgrading their iPhone every two years on average instead of on a three-year cycle.
Mr. Wolf expects that if rumors of a special iPhone model just for Verizon pan out, Apple could double its share of the smartphone market in the United States, too.
Mr. Wolf is projecting 14 million units in Mac sales this year, up more than 50 percent from his earlier forecasts. iPad sales now targeted at 12 million, making his earlier 20 million units in 2019 outdated, too.
Apple is currently trading at $260.46, up 0.37 (0.14%).