The newly launched iPhone 11 and iPhone 11 Pro models appear to be doing a fantastic job at the stores. According to the initial sales reports, the sales of iPhones appear to be higher than the expected low volume. The iPhone 11 and the iPhone 11 Pro offer battery backup and better camera performance over their predecessors.
On hearing about the increased iPhone sales, J.P. Morgan has raised its Apple’s Monday price target. It expects the company’s shares to rise 21% as a result of the improved sales figures.
“We are modestly raising our iPhone volume forecasts and expect investor sentiment on AAPL shares to improve materially given the firm’s ability to drive upward revision to volume expectations despite the 2019 product cycle largely considered to be a muted one,” saysJ.P. Morgan’s analyst Samik Chatterjee.
$699 iPhone 11 helps drive sales
Apple’s shares rose by 0.7% from the last trade closing at $218.82 (in premarket trading). J.P. Morgan has raised its target price on Apple’s shares from $243 per share to $265 per share. The investment banking company expects the iPhone sales to improve tremendously in the upcoming months.
J.P. Morgan predicts that Apple will sell an additional million iPhones compared to the expected numbers and also expects the company to sell an additional three million units in the last quarter of 2019. The investment company also has high hopes on the 2020 iPhone which is expected to be the first 5G iPhone.
Chatterjee adds, “In addition to a raise in volume expectations for 2019 product cycle, we are also increasing calendar 2020/2021 volume expectations led by stronger adoption of 5G enabled iPhones expected to be launched in September 2020 — all of which leads to stronger underlying revenue forecasts and will drive high investor confidence in the sustainability of revenue growth even in the backdrop of a mature smartphone market.”
The 2020 iPhone is expected to ditch the notch, support 5G and more.