Morgan Stanley predicts up to $200 price increase on iPhone Pro models
In his most recent client note, Morgan Stanley Research Analyst Erik Woodring notes three factors he will be most closely observing during Apple’s product launch on September 9.
How Ternus takes his turn
The event is expected to be led by Apple’s newly promoted CEO, John Ternus, who took his position earlier this week in a well-choreographed transition.
Watching his performance under the new spotlight will be a key consideration, says the analyst, as markets will react to popular perception of his approach.
How will Apple balance UX with RAMageddon
The analyst is also curious to find out if the new foldable’s hardware and software experience can catalyze demand. Finally, he’s looking to discover how Apple balances higher prices with affordability, margins, and demand across both new and legacy iPhones.
Woodring believes the device could generate strong revenues for the company as well as restoring innovation to the brand. He believes the device will sell out quickly given what he expects to be strong initial demand and constrained early supply.
Expects up to 6.5m sales in first quarter
His checks continue to point to 7-8 million foldable iPhone builds in C2H26 and up to 20 million across the first-generation product cycle into next year, a volume that essentially doubles the foldable smartphone market.
He anticipates around 6.5 million sales in the first quarter.
The price rise
When it comes to the other devices he points to the likely inclusion of a 2nm processor as a powerful tool with which Apple can evangelize its now rapidly evolving AI, though warns the memory component crisis will make for higher costs – pro models may be up to $200 more expensive in contrast to last year’s models.
Saying that, he also observes that Apple’s supply chain plans seem resilient, with Appe more focused on securing enough components than finding enough buyers.
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