Apple expected the release of the 5G iPhone 12 smartphones to boost sales and “launch a wave of updates” among older iPhone owners. Based on a Wedbush supply chain analysis, the real numbers could exceed optimistic expectations.
Apple’s iPhone (AAPL) shipments in 2021 may return to a growth trajectory after two years of decline, thanks in large part to the 5G iPhone 12 launched in October, says Wedbush analyst Daniel Ives.
Based on the latest analysis of supply chains from iPhone vendors in Asia, the analyst believes that Apple could ship at least 90 million iPhones in the December holiday (Q1 fiscal 2021). That’s higher than Ives ‘optimistic forecasts for mid-December of 80 million iPhones and Wall Street analysts’ average forecasts.
Previously, Nikkei Asia, citing anonymous sources, announced Apple plans to produce about 230 million iPhones in 2021.
Wedbush’s forecasts for second-quarter iPhone shipments are 60-70 million, and 40 million and up for the third.
Strong holiday demand for Air Pods wireless headphones will also impact Apple’s overall revenues and earnings in the quarter. Revenue in the wearable segment, which includes Apple Watch and Air Pods, grew 25% in 2020 (y-o-y) to $ 30.6 billion, accounting for 11.2% of Apple’s total revenue, up from 9. 4% a year earlier.
In addition, the growth in the number of active iPhones increases the device base for selling Apple services. The Services division generates a stable and growing revenue stream for Apple, which reached almost a fifth of the company’s total revenue in 2020, up from 17.8% last year.
As a result, according to the analyst, the growth in iPhone sales should be “a big plus for stocks in the coming months,” and sales of the iPhone 12 with 5G may repeat the success of the iPhone 6 in 2014.
Ives affirmed his outperforming rating (worse than buying, but better than holding) for Apple with a target price of $ 160 (the highest among analysts).
For 2020, Apple shares are up 80.75% to close Thursday at $ 132.7.
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