another-analyst-doubts-the-impact-of-the-iphone 8

1. Another Analyst Doubts the Impact of the iPhone 8 Apple iPhone 8 Plus Price The iPhone 8 launch is still months away, but investors have spent the last six months celebrating the launch. Now, with Apple shares up 24% so far this year, one analyst sees little room for the company to surpass Wall Street’s already high expectations. Mizuho’s Abhay Lamba downgraded Apple shares to Neutral from Buy on Sunday. “There is potentially some risk associated with estimates, as expectations might have gotten ahead of reality,” he wrote in a note to clients. “In our view, enthusiasm around the new product is largely baked into the stock at current levels.” Lamba notes that in the past, investors have sold Apple stock once the company delivered the news Wall Street was expecting. Many expect the features on the iPhone 8 to drive a heavy “upgrade cycle” on par with the one three years ago, when Apple introduced significantly larger screens

2. with its iPhone 6 line. Lamba, though, thinks the iPhone 8 might not go far enough. For example, investors are excited about rumors that the iPhone 8 will feature fancy OLED screens. But these screens are reportedly limited to Apple’s most high-end new phone —and its most expensive. “Apple’s pricing is likely to become the main hurdle to meaningful expansion of its installed base,” Lamba wrote. “Customers with the flexibility to extend the life of their devices may choose to do so until OLED panel and incremental functionality are more widely available.” Apple is betting that it can drive up the average selling price of the iPhone by reserving the best features for a phone that could cost upwards of $1,000. At the same time, the company is expected to come out with slightly upgraded versions of the current iPhone 7 and 7 Plus — at lower price points, but without all the bells and whistles. The question is just how many people are able to buy a $1,000 phone, and then how many are willing to pony up $800 or so for a phone that’s not much better than the one they already have. Lamba’s answer? Not enough. Apple shares are down 3.8% Monday morning. Big Picture: With Apple shares up 24% this year, the good news about the iPhone 8 might already be reflected in the stock, an analyst says. Coupon code for iPhone8