Wall Street analysts: "Apple made us eat our hats"

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Apple recently became the first American company, whose capitalization exceeded $ 1 trillion. Analysts at Goldman Sachs earlier in their forecasts doubted the prospects for the rapid growth of Apple due to falling demand for the iPhone X.

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However, now they have revised their attitude towards the company and, in a new message for customers, noted that the manufacturer of smartphones from Cupertino “made them eat their hats”. Thus, analysts admitted that they were excessively restrained in assessing the growth potential of the FAANG group (Facebook, Apple, Amazon, Netflix and Google).



Analysts at Goldman Sachs Rod Hall wrote in a message to customers that he and his colleagues were expecting a serious drop in sales of the iPhone X and, as a result, the decline in the price of Apple shares did not happen either.



Now, the investment bank has raised its forecast for Apple’s stock price by 20%: from $ 200 to $ 240 per share. Hall, suggests that the price of the new iPhone 9 will be at $ 849, which is significantly higher than the $ 699 price previously discussed in the press. Analysts are convinced that Apple can show "some flexibility and lower the price to $ 800, but it is unlikely to agree to a smaller amount" amid the increased demand for iPhone X in recent months.



In its current assessment of the prospects for Apple Goldman Sach analysts are not alone. Their colleagues at Piper Jaffray, quoted by Investopedia, are also convinced that the demand for the new iPhone will be kept at high levels. Apple also recognized the iPhone X release, which, due to the chosen name, is not associated with a specific year of release, which has a positive effect on demand.



In addition, analysts refer to the study, the authors of which found that about two-thirds of all iPhone owners (more than 500 million people) use a model that is at least two years old. There is also a great potential for growing Apple's business, as many of the customers will want to update their smartphone.

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