Apple stock rises slightly after KeyBanc says gross margin upside likely
Apple Inc. (s: aapl) shares are up 0.3% in Thursday morning trading after analysts at KeyBanc Capital Markets wrote that gross margin upside was likely for the company, while iPhone unit upside seemed less probable. The analysts, led by Andy Hargreaves, analyzed web-search data and concluded that search volume for the iPhone X is similar to what it was for the iPhone 6S shortly after launch. iPhone X search volume is lower than iPhone 6 and 7 search volume, they added. The trends suggest "waning consumer interest in new hardware features," Hargreaves wrote, and he thinks they're "likely to prevent meaningful upside to high-end iPhone units going forward." That said, the firm is upbeat about Apple's ability to drive gross margin upside based on higher iPhone prices and increasing revenue for the company's services segment. Apple shares have gained 47% so far in 2017, compared with an 22% gain for the Dow Jones Industrial Average .
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