Apple Pay (AAPL) To Boost iPhone Market Share: Analyst

The year 2014 has been a great year for Apple (AAPL). The tech giant became the most valuable U.S. company ever (without adjusting for inflation) last month by exceeding $700 billion in market value. The tech giant also released in September the completely redesigned, iPhone 6 and the even larger iPhone 6 Plus. Cupertino also launched Apple Pay a month later, its secure mobile-payment system that works on the iPhone 6 and 6 Plus and lets you use both units as mobile wallets. Additionally, Apple Pay will be released in Britain in the first half of 2015, according to a new report from The Telegraph.

Tavis McCourt, managing director of Raymond James Financial, said in a CNBC interview that Apple Pay alone would not drive up AAPL’s price-per-share, but it would increase the iPhone’s market share. “In terms of monetization, that’s really what matters for Apple,” he said. “Every one percent increase in iPhone market share globally is another 5 to to 10% growth in earnings.”

McCourt added that, while there is a saturation point for the iPhone’s market share, the company isn’t close to reaching it. “They’re taking a rather high-price strategy, so there is a limit,” he said. “But I don’t think that we’re anywhere near that limit.”

About Ron Haruni 1036 Articles
Ron is the Co-Founder & Editor in Chief of Wall Street Pit. Web Site: Wall Street Pit

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