Analyst says 2018 Apple iPhone models will be priced higher than expected

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Remember the backlash created by Apple last year when it priced the tenth anniversary iPhone X at $999 (64GB) and $1,149 (256GB)? Almost immediately there was talk that Apple planned to lower its prices for the 2018 models. And it also started work on a lower priced 6.1-inch iPhone with an LCD screen, no 3D Touch, and a single camera in back.
Today, Bank of America’s Merill Lynch securities unit released a report to clients that says 2018 iPhone pricing will be higher than the consensus estimate forecast by Wall Street analysts. Merrill’s Wamsi Mohan says that he expects the 6.5-inch unit (iPhone Xs Max is the rumored name) to be sold for $1,049. The 5.8-inch iPhone Xs will cost $999 according to Mohan, who sees the 6.1-inch model tagged at $799.
For fiscal 2019, the analyst expects Apple to record an average selling price of $815 for the iPhone. That compares to the $724 ASP recorded by Apple during its fiscal third quarter (April through June). Apple should introduce its three new iPhone models next Wednesday, September 12th. As usual, the stock has been rising going into the event. According to Mohan’s report, Apple’s shares have gained 17% over the last three months.

Mohan reiterated his buy recommendation on Apple with a target of $250. The shares currently trade at $222.79, down 1.8% on the day.

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