Loop Capital Bullish on New Slim iPhone Air Model, Expects Price Increases

Loop Capital's Optimism for iPhone Air

• 💡 Loop Capital has significantly increased its build estimates for the rumored iPhone Air, a super-thin model expected this fall.
• 🎯 Build estimates for the iPhone Air were nearly doubled, from 16 million to 33 million units by year-end.
• 🚀 This new slim model is projected to account for approximately 30% of all iPhone 17 models produced in the year.

Design Changes and Super Cycles

• 📱 The report questions if Apple can make cool smartphones again, noting a lack of major design changes since 2020.
• 📈 Historically, significant design changes, like the iPhone 6's larger screens or the iPhone X's redesign, have spurred super cycles in iPhone sales.
• ⚠️ The anticipated iPhone Air design is seen by Loop Capital as a potential catalyst for such a cycle, especially after the artificial intelligence super cycle did not materialize.

Tariffs and Price Adjustments

• ⚠️ Analysts from Loop Capital suggest that tariffs could potentially pull forward demand for current iPhone models ahead of their implementation.
• 💰 Loop Capital anticipates price increases for the iPhone 17 lineup, which could help offset the impact of potential tariffs.
• 📊 The expectation is that a 25% tariff could be implemented by the end of June.