We attempt to “think different” by leveraging HSBC’s global team for a deep dive into Apple’s supply chain, while sharing unique perspectives from our Consumer, Telecom, Internet, Automotive, ESG, Thematic and Strategy teams We see upside from pent-up demand, meaningfully richer product mix driving ASPs, and faster growth from high-margin Services
Initiate at Buy with a target price of USD193 based on 15x calendar 2018e PE
We highlight how a richer product mix of iPhone, Watch and Services can drive higher blended average selling prices, revenue and margins. The report offers perspectives from across HSBC Global Research, with views on the Consumer, Telecom, Internet, and Automotive sectors, as well as Environmental, Social, and Governance (ESG), Global Thematics and Strategy. We examine Apple’s increasing use of proprietary semiconductors, enabling differentiation in next-generation technologies such as artificial intelligence, augmented reality and autonomous systems.