2018 iPhones to Be Priced Higher Than Consensus Estimates: Merill Lynch

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Throughout the latter part of the year, analysts have been predicting an aggressive pricing strategy from Apple’s end for all of its 2018 iPhone models. The company has been reported to indulge in efforts to reduce component expenditure as well, to meet its pricing goal. However, just days before launch, Bank of America’s Merill Lynch securities has released a report and it says that the pricing of this year’s three iPhone variants will be higher than the consensus estimate forecast by Wall Street analysts.

Merrill Lynch analyst Wamsi Mohan, as reported by CNBC, says that he expects the LCD variant to be priced at $799 (roughly Rs. 57,400), the iPhone Xs to cost $999 (roughly Rs. 71,700), and the 6.5-inch iPhone Xs Max to cost $1,049 (roughly Rs. 75,300). This refutes previous reports that claim that the 2018 iPhone models will not cross the $1,000 mark this year. Research firm TrendForce, predicted that the prices of Apple iPhone models in 2018 may start around $699 (roughly Rs. 50,200) to $749 (roughly Rs. 53,800) for the 6.1-inch LCD iPhone variant, the 5.8-inch variant will be priced starting from around $899 (roughly Rs. 64,500) to $949 (roughly Rs. 68,100), and the 6.5-inch iPhone model is expected to aim for the “premium business segment” with a starting price of $999 (roughly Rs. 71,700). To recall, noted analyst Ming Chi Kuo had predicted that the LCD variant will be priced starting from as low as $600 (roughly Rs. 43,100).

Mohan predicts an average selling price of $815 (roughly Rs. 58,500) for the iPhone in fiscal 2019, up from $724 (roughly Rs. 52,000) in fiscal third quarter. “iPhone pricing is likely higher than embedded in consensus. Although investor expectations are for some moderation in pricing for 2019 (sic) models, we expect Apple to continue to price the iPhones for value, which should drive upside to consensus estimates,” Wamsi Mohan, analyst, Merrill Lynch wrote in his research report.

Apple is set to launch the new iPhones on September 12 at Steve Jobs Theatre. The 6.1-inch LCD variant is expected to sport no 3D Touch, sport a single camera at the back, and support dual-SIM slots. The two OLED variants are tipped to come with dual cameras at the back, and 3D Touch support.

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