Apple’s flashy new iPhone X, announced last week, certainly isn’t cheap, with a starting price of $999.
While it’s much higher than previous models, Morgan Stanley says sales shouldn’t be impacted by the high price.
In a note sent out to clients on Tuesday, Morgan Stanley analyst Katy Huberty wrote, “An aspirational brand, high customer loyalty, and weaker USD allow Apple to increase prices without hurting demand.”
Because of that, Huberty is raising her fiscal year 2018 earnings per share target 7% to $12.60.
Huberty continued, “A weaker US Dollar compared to several international currencies, including Euro, Brazilian Real, Indian Rupee, and Chinese Yuan helps offset the recent USD price increases.”
China is already set to be one of the fastest-growing markets for Apple, Huberty told Business Insider in an exclusive interview last month. This year’s 10% drop in value of the dollar will only help the number of potential upgrades in the country.
“China remains a key driver of our above consensus estimates, where the number of iPhones due to be upgraded grew 56% this year setting up for a powerful upgrade cycle,” the bank said.
The bank has raised its price target for Apple shares from $182 to $194, making Huberty the second-most bullish analyst on Wall Street, according to Bloomberg data. Her bull case says the stock could even skyrocket as high as $253.
Shares of Apple are up 36.5% this year.