Canaccord analyst Michael Walkley believes that Apple Inc. (NASDAQ:AAPL) dominated the premium-tier global smartphone market during Q2/C2015 with near-record share of industry profits and ongoing strong market share of the premium tier smartphone market, based on his recent analysis.
iPhone 6 and Upcoming iPhone 6s Products Sales
“We believe the iPhone 6 and upcoming iPhone 6s products should continue to post strong sales and high-end smartphone market share gains, as we believe the iPhone 6/ 6 Plus smartphones are generating very strong replacement sales from existing iPhone consumers who slowed the pace of iPhone upgrade purchases during the relatively disappointing iPhone 5 and 5s product cycles. In fact, with only 27% of the iPhone installed base having upgraded to the iPhone 6/6 Plus devices by Q3/ F’15, we anticipate continued strong replacement sales through C2015 and beyond. Further, consistent with management commentary, we anticipate continued high-end smartphone market share gains for the larger screen iPhone 6 devices as our surveys indicate a greater mix of Android smartphone consumers are switching to the iPhone 6 smartphones than during iPhone 5 series launches.”, Walkley wrote.
“We believe iPhone sales at these levels could fund solid long-term capital returns programs and Apple could further monetize this large iPhone user base through additional products, software, and services driving ongoing long-term sales growth.”
The analyst reiterated a Buy rating on Apple shares, with a price target of $155, which represents a potential upside of 35% from where the stock is currently trading.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Michael Walkley has a total average return of 18.7% and a 59.8% success rate. Walkley has a 27.0% average return when recommending AAPL, and is ranked #22 out of 3736 analysts.
Out of the 53 analysts polled by TipRanks, 35 rate Apple stock a Buy, 15 rate the stock a Hold and 3 recommend Sell. With a return potential of 24%, the stock’s consensus target price stands at $143.05.