Apple shares opened higher Thursday in the US, following news Morgan Stanley considers the stock one of its top picks for 2018. The global tech giant is also in the headlines after it confirmed it deliberately slows down some of its iPhone models, as they get older.
By 1500 BST, Apple shares were trading 0.39% higher at $175.03. The Apple share price has climbed steadily higher over the course of 2017 after it began the year at $115.82.
Morgan Stanley reaffirms upbeat Apple view
Morgan Stanley Apple analyst Katy Huberty told clients in a note Thursday, that Apple “remains our top pick entering 2018.”
The reason for Huberty’s upbeat assessment rests squarely with the adoption of the iPhone X in China. Data shows iPhone X adoption is faster than that of the iPhone 8 in China, Huberty explained in her note, according to a CNBC report.
“Despite faster penetration of iPhone X vs. iPhone 8/8 Plus, we believe there remains significant pent-up demand from the base of 2+ year old iPhone owners,” Huberty wrote. She added that almost half of Chinese users who have upgraded to the iPhone X, did so from the iPhone 7 and 7 plus.
“Ultimately, these data points show that faster iPhone X penetration, coupled with increasing switching rates to Apple, have accelerated market share gains for the iPhone in China,” Huberty added.
Apple admits to slowing older iPhone models
While investors gain confidence from Morgan Stanley’s latest assessment of Apple, some users will be pleased to discover their conspiracy theories, regarding some of Apple’s older iPhones, is correct.
iPhone users have contemplated the difference in running speeds between different models. And, Apple has now confirmed the IOS updates include systems to manage some models and encourage their battery life to last longer, by slowing the devices down.
“Lithium-ion batteries become less capable of supplying peak current demands when in cold conditions, [when they] have a low battery charge or as they age over time, which can result in the device unexpectedly shutting down to protect its electronic components," Apple said.
"Last year, we released a feature for iPhone 6, iPhone 6s and iPhone SE to smooth out the instantaneous peaks only when needed to prevent the device from unexpectedly shutting down during these conditions,” Apple added.