The iPhone 7 is expected to overturn the downward trend of iPhone sales, at least according an analyst from investment firm UBS. In a note issued to investors today, analyst Steven Milunovich expressed his belief that the iPhone 7 will bring 8% unit growth in fiscal 2017, which, he says, is close to the current Wall Street consensus (via AppleInsider).
After checking Apple’s financials for the last six years, the analyst concluded that the company’s “stock tends to correlate better with the next 12 months of Apple’s results than with six months.” As for Apple’s future, he says the “iPhone 8” will “cause a spike” in sales, estimating 16% growth year-over-year for fiscal 2018.
Looking further ahead into the near future, Milunovich forecasts revenue growth of 4%, thanks to the demand for the iPhone 7, which will also bring earnings per share of $9.30 in fiscal 2017. The analyst reiterated UBS’s “buy” rating for Apple stock and set a price target of $127.
Apple is expected to release a completely redesigned iPhone next year. The rumour mill has been suggesting that the handset will feature a glass front and back, and possibly an edge-to-edge display, and there are some whispers about the Touch ID sensor finding its way under the touchscreen, as well.