Boston, MA 03/12/2014 (wallstreetpr) – Apple Inc. (NASDAQ:AAPL) shares were uo by 0.97% to $536.09 and according to the securities analysts at Pacific Crust the highest price point in coming month could be $635 for the stock. What follows on is a range of plausible reasons as to why they think so?
Cheaper and Larger “iPhone Air” Will bring home More Customers
The Smartphone maker is about to go for another bifurcated product launch this year with a larger smarter phone against the recently unveiled iPhoen 5S. Although the practicable version of the model in development has a screen sixe 8 times larger than the 5S model, the company is trying to make it larger. Owing to the “Sapphire Crystal” display the bezels on the sides, top and bottom can be slimmed down thus expanding the screen size up to 17 times as high as the preceding version.
The larger device is currently poised for the low-end customer (only an additional $100 is charged for the screen size top up). So the market will expand in developing nations where Smartphone are typically considered as the Thing of the Elite. The new phone could capture as much as 10% of the jumbo Smartphone market, said the Pacific Crust Analysts, Hargreaves.
iPhone Air Would Skim market at Both Ends
Despite it’s mid to small market focus the new phone could easily be pitched up for the high end value “Apple loyalists” who are willing to pay premium prices for high – end devices. Historically low-end versions like 5c have never pulled back the volume for high end-products like 5S launched in the same year. So bottom line will also gain momentum through earning increment. Stock price ranges typically escalate to a higher Price to earnings multiple EPS increases at such a pace.
Given a successful launch, the Apple Inc (NASDAQ:AAPL)’s price is expected to boost the company’s its annualized earnings per Share by $4 in the coming year. The P/E multiple at this price point is expected to be 14.1 which will finally push the price to $635 at an 18% premium over yesterdays’ closing price.
