Apple Stock Forecast: Better Cameras Make The iPhone 7 & iPhone 7 Plus Must-Have Upgrades

motek 1The article was written by Motek Moyen Research Seeking Alpha’s #1 Writer on Long Ideas and #2 in Technology  – Senior Analyst at I Know First.

Apple Stock Forecast


  • Initial inventory of the 5.5-inch iPhone 7 Plus is sold out.
  • The basic iPhone 7 plus is $120 more expensive that the smaller iPhone 7. However, the better dual camera system is likely why more people are favoring it.
  • The best camera is what people always carry with them. The iPhone has become a worthy replacement for compact and interchangeable-lens digital cameras.
  • Anything that inspires iPhone loyalist to upgrade is good for Apple.
  • The most recent algorithmic forecasts from I Know First are hinting AAPL is still worth buying right now.

Apple’s (AAPL) stock jumped more than 11% last week. I told you last month to go long on Apple before the iPhone 7/iPhone 7 Plus gets released. The iPhone 7 models got their official commercial last Friday, September 16. Reports of stronger-than-expected demand definitely helped AAPL jumped more than 11% prior to their official retail debut.

Apple’s stock is always attractive to investors when there are reports of short-supply for its latest iPhone models. Savvy investors should continue to add more to their AAPL position while there is still a strong demand for the iPhone 7. Apple underestimated the market demand for its new phones. Initial supplies of the jet black iPhone 7 and all the variants of the dual camera-equipped iPhone 7 Plus are already sold out. The removal of the traditional 3.5mm audio jack did not deter legion of iPhone loyalists from swamping the pre-order page of Apple.


Apple Stock Forecast

(Source: Apple)

Best Selling Point of The iPhone 7 is The Improved Camera

The best camera is what people always carry around, and that is the smartphone. The improved photography potential of the 5.5-inch iPhone 7 is the most compelling reason why many people should upgrade to it.  Forbes Contributor Gordon Kelly agreed with my assessment that the iPhone 7 Plus is now a legitimate replacement for their bulky DSLR cameras.


(Source: Apple/Forbes)

Please read the review of a professional photographer regarding the usability of the iPhone 7 and iPhone 7 Plus for pro-level photography and videography. Mann’s favorable review convinced me that Apple might beat my 120 million/year sales estimate for the iPhone 7.

Austin Mann praised the new iPhone 7 models’ cameras for their better low-light capability, faster sensor performance, 2x optical zoom lens, wider color gamut, flicker-free time-lapse, and waterproofing. Austin Mann’s photograph of an elderly woman clearly illustrates why the iPhone eventually become the ultimate go-to camera for Apple customers.


(Source: Austin Mann Photography)

Apple’s engineers have built super-sharp cameras for the iPhone 7. Look at the highly-detailed face of the woman above, Apple might have delivered the ultimate camera phone in the iPhone 7. Apple has a commercial winner when a professional photographer like Mann praised the iPhone 7 as a worthy alternative to digital cameras.

The pro-level quality of the iPhone 7 cameras might be the last nail on the coffin of pocket digital cameras. As you can see from the chart below, smartphones like the iPhone 7 are rapidly contributing to the extinction of digital cameras. The iPhone 7 already has f1.8 aperture, optical image stabilization, and 2x zoom. Apple only needs to increase the optical zoom to 10x and the next iPhone could become true DSLR replacements for landscape and street photographers.


In my opinion, the faster A10 processor and bigger 3GB RAM were also necessary to help handle the improved photography and videography features of the iPhone 7. Apple’s continuing mission to make the iPhone a pro-level photography tool is why new iOS handsets will persistently come with faster processors and more amount of RAM. The dual-camera system of the iPhone 7 Plus needs faster computational power to fuse the two images simultaneously captured into a single image.

The only thing I want to see Apple implement next year is for the iPhone 8 to have microSD card slot. This is necessary for professional photographers who shoot 50-megabyte RAW pictures or 4K videos. On a typical wedding event shoot, a photographer will take 800-2,000 RAW images.

I am not saying that a pro photographer should now start using the iPhone 7 Plus as his main camera in paid gigs. Tradition and customer expectation demand that he comes with a bulky DSLR camera made by Canon (CAJ) and Nikon (NINOY). However, an iPhone 7 Plus attached to a pricey tripod could be a secondary camera for taking angle shots on weddings, birthdays, and other party events.

Another Explanation Why The iPhone 7 Plus Is Sold Out

Far more people will use the iPhone 7 Plus for gaming purposes than photography or videography. The iPhone 7 Plus and iPhone 7 tout 2x faster processor than iPhone 6. They also have 3x faster graphics processors. However, the bigger 5.5-inch display of the iPhone 7 Plus is also a compelling reason for gamers.

The bigger screen display of the iPhone 7 Plus will allow gamers to better appreciate the better graphics and CPU performance in Apple’s latest A10 System-on-Chip product.


(Source: Apple)


Apple’s stock could shoot up higher in the next few weeks. It will be a big boost for the buy-side investing community if Apple again reports persistent sold-out status for the iPhone 7 Plus. Slice Intelligence also reported the iPhone 7 Plus made history – it’s the first time that the bigger model outsold the smaller iPhone in terms of pre-order purchases. Again, I reiterate my position that the better photography potential of the iPhone 7 Plus makes it more attractive to people.

The more expensive 5.5-inch model comes at higher price tag/higher margin. Selling more of these bigger iPhone 7 models therefore leads to better operating margins for Apple. I understand people want better photos from their phones, which they could post them on Facebook (FB) and Instagram.

Apple Stock Forecast

My buy rating for AAPL is backed by the buy signals given by the algorithmic forecasts of Apple from I Know First. The holiday shopping season is coming soon and the iPhone 7 will likely sell 80 million units during the last three months of 2016. My fearless forecast is that AAPL could hit $125 again in January after its earnings report.


Past I Know First Forecast Successes with Apple Inc.

I Know First has been bullish on AAPL in past forecasts. Since then, AAPL has been up almost 27% to date.


This forecast was sent out to I Know First subscribers on May 15, 2016. To subscribe now click here.