In a new research note distributed on Thursday, Huberty estimates the average cost of the iPhone will be $753 in 2018, that's quite a bit higher than the consensus of $675. It's believed that Apple plans to launch a more expensive 'iPhone 8' this year which could have a "more power efficient OLED display, wireless charging, 3D sensors, and a new curved form factor."
Another factor contributing to the higher average selling price is the increase in iPhone Plus models being sold. Those models demand a $100 premium for their larger displays.
Huberty also notes that Apple has a "clear path to supercycle" during which a larger than normal portion of Apple customers choose to upgrade their devices.
The "supercycle [is] not reflected in consensus iPhone shipments," Huberty writes. "Our upgrade analysis, which covers regions that represented 96% of iPhone shipments in CY16, points to base case of 260M (top down) to 264M (bottom up) demand during the FY18 Supercycle and implies at least 7% upside to current consensus forecast of 242M."
Morgan Stanley has raised its Apple price target to $161 from $154.
[via Business Insider]