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Analyst: iPhone Xs, iPhone Xs Max are in ‘solid demand’

As reported by CNBC, Citi Research has raised its Apple stock price target from $230 to $265, predicting the smartphone maker will report earnings per share above expectations next year.

“We increase our financial model primarily due to higher ASPs [average selling price] & stronger gross margins given the consumer preference for higher memory configurations [the models with an 512GB drive] of iPhones coupled with the new falling memory prices,” the firm’s analyst Jim Suva says. “”Our checks suggest solid demand for iPhone XS & XS MAX and importantly most consumers opting for higher memory iPhone configurations.”

The analyst said memory represents 10% to 15% of the component costs in base iPhone models. But when a consumer buys a higher memory configuration that costs $100 more, it costs Apple only an incremental $20, Suva says. He noted flash memory prices are down 18% since March.

Dennis Sellers
the authorDennis Sellers
Dennis Sellers is the editor/publisher of Apple World Today. He’s been an “Apple journalist” since 1995 (starting with the first big Apple news site, MacCentral). He loves to read, run, play sports, and watch movies.