Analysts: Buy Apple Because iPhone X Will Lead to a ‘Super Long Cycle’ for the Company

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According to a Wall Street firm, the innovative features of Apple in the new iPhone X of 2017 will pay dividends for years.

Piper Jaffray reemphasised its overweight rating for the maker of the smartphone, predicting that Apple will benefit from rolling out improved displays and 3D sensors to the rest of the company’s iPhone product line in 2018.

On Thursday, a note to clients that is entitled “Why AAPL Can Keep Working: ‘Super Cycle’ Is Now ‘Super Long Cycle,'” was released by analyst Michael Olson. He wrote: “Apple may be increasingly well positioned to experience a strong multi-year iPhone trajectory, not the short-lived ‘super cycle’ that was anticipated. We believe an elongated iPhone cycle in FY18, followed by a wider array of iPhone X ‘offspring’ in Fall-18, along with growing awareness and interest in augmented reality (fueled by developers populating app store with new use cases and, longer-term, addition of rear-facing 3D sensor), will all push out the need for Apple to answer the question of ‘what’s next?'”

Olson reiterated his $200 price target for the shares of Apple, representing eighteen percent upside to the close of Wednesday.

The analyst expects that Apple will release three iPhones in 2018 with the better OLED displays of the iPhone X. In addition, Olson notes that according to the firm’s checks, 3D sensing component suppliers are being requested to raise their volume by three times in 2018.

He wrote: “iPhone X ‘offspring’ can expand upgrade interest to a larger portion of iPhone Users in Fall-18. As options for the ‘X’ generation iPhone expand, the ‘shots on goal’ for upgrading increases.”

Apple is one of the best-performing large-cap stocks on the market so far in 2017. Through Wednesday, the shares of the company have rallied forty-six percent versus the seventeen percent gain of the S&P 500.

The stocks of the company increased by 0.8 percent on Thursday after the report.

The iPhone X of Apple was launched on November 3 at a base model price amounting to $999.