Investing.com - The future looks exceedingly bright for tech giant Apple Inc (NASDAQ:AAPL), as industry expert Dan Ives envisions a surge in the company's stock driven by impressive sales of the upcoming iPhone 15 and expansion in its services sector.
Although recent reports have indicated a slowdown in iPhone sales, with revenues dropping by 4% over the last six months compared to the same time frame last year, Ives remains optimistic. He suggests that approximately 250 million older iPhones are still being used by customers who haven't upgraded their devices in at least four years. The introduction of the iPhone 15 is expected to entice these individuals, along with loyal Apple fans, into purchasing new models while potentially spending more on them.
Ives also predicts an increase in average sale prices for new iPhones – estimating it could reach around $925, which is $100 higher than what has been observed over the past year and a half. This speculation aligns with industry chatter about potential price hikes when Apple unveils its latest device this fall. Notably, Ives has had success forecasting such changes before.
Currently, available models include the high-end iPhone 14 Pro Max priced at $1099 and its slightly smaller counterpart starting at $999. Meanwhile, those seeking less storage can opt for an entry-level model priced at $799 (with options to double the storage capacity for an additional fee). Whether or not these prices will change across all offerings remains uncertain until Apple makes its official announcement later this year.
Contrary to popular belief that points toward Vision Pro AR headset as a significant driving force behind Apple's growth trajectory; Ives identifies their services division as holding greater untapped potential. This segment includes revenue generated from cloud services like storage solutions, App Store, AppleTV, Fitness programs, and advertising. Ives notes that the services sector is on track to reach nearly $100 billion in comparison to its $50 billion revenue reported back in 2020.