The latest numbers from Canaccord Genuity reveal that Apple accounted for 93% of mobile profits during the fourth quarter, leading the financial services company to raise its price target on Apple shares from $135 to $145. The firm also predicted that iPhone adoption could grow to 650 million users through 2018 as more smartphone owners upgrade to the iPhone 6 and iPhone 6 Plus.
Barron's shares Canaccord Genuity analyst Mike Walkley's note to investors:
We believe the strong iPhone 6 replacement sales should continue during C’15, as we estimate only 15% of the current estimated 404M iPhone installed base has upgraded to the new devices. We also anticipate continued strong share gains for the larger screen iPhones from high-tier Android smartphones during C’15 driving strong growth in the iPhone installed base and model the iPhone installed base growing to 487M subscribers exiting C’15 up 20% Y/Y.
Apple and Samsung combined to capture all profits in the mobile industry during the fourth quarter, as competitors including Microsoft, BlackBerry, HTC, Sony, LG and Lenovo either broke even or faced a loss in operating income during the three-month period. Apple captured 79% of mobile profits for the entirety of 2014, with a margin of 37% on operating income of $44.6 billion.