Morgan Stanley: Apple breaks law of economics as high price of iPhone X means higher sales
According to Huberty, Apple's MO is to sell high quality, innovative products at premium prices. She says that demand for iPhone models is based on the average selling price of the phone; the higher the price, the higher the demand and vice versa. Apple apparently figured this out a while back which is why the company doesn't appear to be worried about selling the iPhone X for such a high price.
The Morgan Stanley analyst also credits Apple's loyal fans. In Morgan Stanley's AlphaWise US Smartphone survey conducted in April, 92% of iPhone users who plan on upgrading their phone over the next year, said that they will purchase a new iPhone. That bodes well for a strong 2017-2018 for Apple. As a result, Morgan Stanley raised its 12-to-18 month target on Apple's shares to $194 from $182. The stock closed today at $158.73.