Apple stock fail to make gains on iPhone 12 launch, analysts praises pricing
Apple stock price failed to generate an upside momentum despite launching closely watched 5G iPhone 12 event last week. The shares of the largest tech company plunged from $125 to $119 a share since it has launched a series of new 5G phones.
The survey reports show that customers are not so much excited about switching to new phones because of low purchasing power.
Piper Sandler survey shows that only 10% of Americans out of 1000 respondent plans to upgrade to new phone. The major reason for the lower interest is purchasing power, which is significantly impacted by the coronavirus pandemic.
Analysts Raised Apple Stock Target on iPhone 12
The market analysts have applauded the pricing structure for the new phones. For instance, Jefferies has provided a buy rating to Apple stock with a $140 price target. It also expects robust sales growth due to the 5G factor and aging installed base.
The firm said, “The lineup was “largely in-line with our expectations with a few modest positive surprises. The carrier promotions were one of the most important elements of the iPhone 12 launch.”
Raymond James has set on outperform ratings with a $120 price target, saying the new pricing range would support sales growth in the days ahead. Raymond James is confident that carriers would play a big role in sales growth, expecting a big improvement in revenue and earnings estimates for the upcoming quarters.
Apple stock price soared almost 60% since the beginning of the year and the shares are up 100% in the past twelve months. Apple stock price is yet to respond to the new iPhone series launch. Investors are waiting for quarterly results.
Carriers are Offering Big Promotions
On the other hand, Verizon and AT&T have announced to give away iPhone 12 models for free if customers sign up for unlimited plans. T-Mobile US launched a promotion after the arrival of new iPhones. The company offers 2 new iPhones for only 100 each to new customers with trade-ins.