Apple (AAPL) Stock: Why The Price Jumped Up Today

By Amit Chowdhry ● Apr 4, 2022
  • The stock price of Apple Inc (NASDAQ: AAPL) increased by 2.37% today. This is why.

The stock price of Apple Inc (NASDAQ: AAPL) increased by 2.37% today. Investors appear to be responding positively to a bullish research report.

UBS analyst David Vogt reiterated a “Buy” rating on the shares. And Vogt assigned the company a price target of $185, which imputes a 6% upside on the stock.

Vogt adjusted the rating after a survey showed that the Services segment is a key differentiator in the smartphone market. And Vogt noted the key findings of the survey indicated that higher-end iPhones are driving increased loyalty and consumption of Apple services.

The number of iPhone users (iPhone 11, 12, and 13 owners) who find the product enjoyable increased to 56%, up from 48% in 2021. And the survey also showed that 35% of the iPhone base is at least 3 years old, offering a strong opportunity for upgrades. Plus the iPhone handset age went up to 2.3 years, up from 2.1 years earlier and it also appears that many upgrades have already taken place with about 80% of current iPhone owners in the US, UK, and Japan already getting a new iPhone.

“Just 12% of respondents noted they owned a 7 series or older, down from 20% last year and 35% two years ago as a material percentage of installed base has upgraded following the launch of the 12 and 13 series. Including other older models like the 8 and X series, we estimate ~35% of the base is over 3 years old with 25% at least 4 years old,” wrote Vogt in a research report. “Apple ecosystem in China continues to grow following some share gains over the past 12-18 months following a period of share loss several years ago.”

In China, 44% of iPhone owners said that they previously owned an iPhone, up from just 29% in the year-ago survey. In the U.S., the survey shows about 81% of current iPhone owners previously had an iPhone, up from 77% in 2021.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.