Needham & Co.’s Charlie Wolf told investors Wednesday that Apple's iPhone 4s remains a powerful driver of revenue for Apple, drawing more consumers into the iOS fold for the first time than many analysts had expected in recent months.
Wolf once again put forth his Buy rating on AAPL and a $590 price target, explaining that “the surprising strength of iPhone 4S sales in the March quarter challenges the conventional wisdom that Apple has to build a low-end phone to retain share in the smartphone market.”
As it turns out, the strength of Apple's legacy product line can't be underestimated as we look to future earnings from the iDevice maker.
According to Wolf, the 4S added some 10 million new owners to iPhone in the quarter. This, the analyst proposes, proves that “the iPhone’s brand is so strong, a two-generation-old iPhone despite its premium price holds great appeal.” This reality, he concludes, “confirms Apple’s ongoing commitment to building the aspirational brand even at the low end of the market.”
Source: Barron's
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