Will new iPhones make Apple Inc the first $1 trillion company? | Financial Post

Even though an iPhone ‘super cycle’ has attracted a lot of attention, Hall believes that analysts’ forecasts still fail to capture the size of the likely replacement cycle – assuming Apple delivers a compelling product this year.

His revised price target of US$176 per share (up from US$165) reflect both higher volumes and a materially higher ASP, since the new OLED display-based iPhone Pro should be priced at an average of US$1,100.

Hall actually sees upside risk to his estimates, and also expects Apple’s pricing strategy will be aimed at spreading the replacement cycle over two years, as new product categories like augmented reality, appear to be a few years out.

“As a result of the size of this cycle and this spreading effect, we expect Apple to sustainably beat Street estimates well into 2018,” Hall said.

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Will new iPhones make Apple Inc the first $1 trillion company? | Financial Post.