Apple Inc. (AAPL) Is About to Be the Hot Event of the Week; Drexel Hamilton Weighs In

Brian White anticipates even an atypical AAPL iPhone X launch can achieve 27 million units by FQ1:18.


Get ready for the feature Apple Inc. (NASDAQ:AAPL) attraction of the week, says Drexel Hamilton analyst Brian White who believes this Friday is about to jumpstart “the biggest event of the week in tech:” the iPhone X will officially be accessible for pre-order to a public buzzing with anticipation.

“This is Apple’s most unconventional iPhone launch ever with the iPhone 8/8 Plus made available for pre-order on September 15 and the iPhone X on tap this Friday. Moreover, the first tranche of the iPhone 8/8 Plus included approximately 29 countries/territories and the iPhone X will launch in 57. This staggered launch has caused more confusion relative to past cycles,” White notes.

The holidays may actually be at risk for a shortage, where even if iPhone users are hyped to order the latest gadget, the analyst fears some may not even have the iPhone X in their hands for gift-giving season. Why? White points to his China Tech Tour, where he found some challenges circling 3D sensing module yield entanglements that may make it tougher for the titan to meet strong initial iPhone X demand.

“Although we believe this shortage will negatively impact Apple’s ability to meet demand in the December quarter, we expect this will drive better than average seasonality in the March and June quarters,” continues White. All the same, the analyst stands by his iPhone X expectations angling for 27 million iPhone units for the first fiscal quarter of 2018, deeming the estimate “achievable.”

“Finally, we also expect the buzz around the iPhone X to create a halo effect around the Apple brand ahead of the holidays and drive purchases of other Apple products. New products that come to mind include the Apple Watch Series 3, the new Apple TV 4K and HomePod (expected in December),” White surmises.

Ahead of this Friday’s iPhone X pre-orders going live, the analyst maintains a Buy rating on AAPL stock with a price target of $208, which represents a 32% increase from current levels. (To watch White’s track record, click here)

Wall Street loves Apple stock, considering most voices are betting on this tech titan. TipRanks analytics exhibit AAPL as a Strong Buy. Based on 29 analysts polled by TipRanks in the last 3 months, 22 rate a Buy on Apple stock while 7 maintain a Hold. The 12-month average price target stands at $176.61, marking a 12% upside from where the stock is currently trading.