Wall Street analyst thinks that $749 iPhone XR is also cheap

The new picture controls the functions are displayed on an iPhone XR during an event to announce new products, Wednesday, Sept. 12, 2018, in Cupertino, California. (AP Photo/Marcio Jose Sanchez)

(Copyright 2018 The Associated Press. All rights reserved.)

Goldman Sachs is putting a new spin on sticker shock.

A technical analyst on Wall Street bank took one look at the $749 price of Apple’s just-unveiled iPhone XR and thought it was too low.

What do you say?

While many shoppers may blanch at the $50 increase from the iPhone 8 Plus, Rod Hall thinks that Apple should have priced the XR a little higher — like $849.

“The new LCD ‘XR’ model is priced lower than we thought likely,” Hall wrote. “This effectively obsoletes two iPhone-8/8+ Skus in our opinion.”

The iPhone XR, which will be released in October, is the least expensive of the three new iPhones. It features an edge-to-edge display and a faster processor than the $699 8 Plus.

By the pricing of the XR $749, Apple will proceed to a lower average selling price than Goldman has predicted, Hall said.

As a result, Hall reduced his forecast for Apple’s earnings per share.

Investors seemed to shake off Hall’s concerns, pushing Apple shares up 2.4 percent on Thursday, $226.41.

Hall is not the only analyst who fears for the XR price will be the press on the sale of the 8 Plus.

“I don’t think many people are going to buy the iPhone 8 if you are going to look at the line-up,” CFRA Research analyst Angelo Zino said The Post. “I think by far the best-selling iPhone product, the next years will be the iPhone XR.”

Zino said that he predicts that the XR will be more than 50 percent of the sales of Apple’s new devices.

“There are a lot of iPhone users who have not upgraded to an iPhone 6S or older,” Zino said, adding that the lower price and the new form-factor will convince a large block of consumers to take the plunge.

In comparison with the new iPhone XS iPhone XS Max — starting at $999 and $1,099, respectively, with the Max topping off at a stunning $1,449 — XR, is ready to be used as a cheap alternative.

The XR is also the first iPhone in the next few years are sold in a variety of colors, including red, coral, yellow, and blue.

“When it’s all said and done, I think it’s the key for the cycle,” Zino said. “If you’re a consumer, it is a no-brainer, you go with the iPhone XR.”

The analyst also said that The Post that he predicts that even the 2 year old iPhone 7, which has seen the starting price cut to $449, will sell the iPhone 8, thanks to the appeal of these markets to develop.

In a note to clients on Thursday, Needham analyst Laura Martin in comparison with Apple’s decision to the release of the iPhone XR on Oct. 26 — a full month after the iPhone XS launch — of the way in which studios release the films in the cinema and then on television.

“[This is] a release windowing strategy of the movie industry has used for decades to maximize the total revenue,” she wrote.

This story was previously published in the New York Post.

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