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What iPhone 8 Delay? Morgan Stanley Sees None, Ups Apple Price

Some analysts are predicting Apple's iPhone 8 could be delayed by production snags, but Morgan Stanley doesn't see that happening. (Apple)

Some analysts are predicting that Apple's (AAPL) next-generation smartphone could be delayed by production snags, but Morgan Stanley doesn't see that happening.

Morgan Stanley analyst Katy Huberty said her firm sees no evidence of a delay in the iPhone 8, which is expected to launch in September, when Apple typically debuts new handsets.

"Recent reports on low yields for new components that could affect the 10th-anniversary iPhone launch have caused investor concern, although Morgan Stanley's Greater China Technology Research colleagues have not yet seen delays in the supply chain and still expect new iPhone production to start on time for most of the components (including OLED)," Huberty said in a report.

But she remains conservative in her initial expectations for iPhone 8 supply and forecasts iPhone unit growth of just 3% in the second half of calendar 2017.

Huberty has growing confidence that the iPhone 8 will kick off a supercycle of upgrade activity. The iPhone 8 is rumored to feature a 5.8-inch borderless OLED display, glass-sandwich design with wireless charging, and augmented-reality capabilities.

Huberty raised her price target on Apple stock to 177 from 161 and maintained her overweight rating.


IBD'S TAKE: Apple stock has an IBD Composite Rating of 97, meaning it has outperformed 97% of stocks in key metrics over the past 12 months. For more information, visit the IBD Stock Checkup.


Earlier Wednesday, BMO Capital Markets reiterated its outperform rating on Apple and raised its price target to 170 from 160.

Apple stock was down 3.4% to 150.25 on the stock market today.

Wells Fargo analyst Maynard Um took a cautious stand on Apple in a report Wednesday. He kept his market perform rating and price target of 140 on Apple stock.

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