Apple's upcoming anniversary edition iPhone 8 is unlikely to cost $1,000 as has been speculated, with new models expected to see a "bulge of buying," UBS said in a note on Tuesday as it upgraded its outlook on the U.S. technology giant's earnings.
UBS said it now expects Apple's earnings per share (EPS) for fiscal 2018 – which begins in the December quarter of 2017 – to be $10.55, up from its previous estimate of $10.25. The iPhone average selling price (ASP) is likely to be $692, up from a prior estimate of $667, the investment bank added.
Driving this upgrade is UBS's expectations of a higher priced anniversary edition iPhone and a boosted upgrade cycle.
Apple is expected to release three iPhone versions later this year, with one of those models having an organic light-emitting diode (OLED) display. OLED offers brighter displays and better power efficiency over liquid crystal displays (LCD) currently in use.