Analyst: high demand for iPhone 12 may help Apple’s market value exceed $3 trillion by the end of 2021


Tencent technology news on February 22, analysts of Wade Bush securities company believe that the ultra-high demand and sales of iPhone 12 will run through the whole 2021, which may help Apple’s market value exceed $3 trillion by the end of the year.
With sales of Apple’s latest smartphones surging, the iPhone 12 is in what analysts call a “super upgrade cycle.”. In a report to investors, Wade Bush analysts said Apple’s performance this year will be better than Wall Street’s expectations.
“According to the current trend, Apple may sell more than 240 million iPhones in a bull market, or even an astonishing 250 million iPhones,” said Dan Ives and Strecker backe, analysts at Wade bush This is not only higher than the 220 million units predicted by Wall Street, but also will break Apple’s record of 231 million units sold in 2015.
Part of the reason analysts are optimistic about Apple’s performance is that after examining Apple’s Asian supply chain, they found that demand for its new smartphones was “strong.”. In addition, at best, there are about 350 million iPhones that need to be upgraded, which could lead to an “unprecedented upgrade cycle” for apple.
Apple is further benefiting from the belief that the average price of the iPhone will rise, with the iPhone 12 Pro believed to be the world’s top selling model.
Sales in China will be the “key” to Apple’s super cycle. It is estimated that by 2021, Chinese users will account for 20% of iPhone upgrades. “So far, we have seen considerable potential from China, and the positive trend will continue into the rest of 2021,” wade Bush analyst wrote
In a conference call with analysts following Apple’s January results, Tim Cook, the company’s chief executive, warned that the record $21 billion in revenue from China “does not just come from the iPhone.”. While cook hinted that other factors were at work, he also acknowledged that Apple had the highest number of upgrades from major markets in a single quarter.
Although the service business has been the main news about Apple’s financial situation in the past nine months, Wade Bush still thinks that the upgrade of the iPhone installation foundation is “the focus of Apple’s growth story”.
This could eventually help Apple boost its value throughout the year, with analysts saying: “we believe Apple’s market value will reach $3 trillion by the end of the year.” This prediction has also been recognized by the venture capital firm Loup ventures.
At the same time, Wade Bush also mentioned the rumor about “Apple car” and thought it was “the right strategic move taken by Apple at the right time”. As for when Apple will not release its first electric car, Mr. Wade Bush estimates that Apple will announce some form of cooperation in the next three to six months, and the possibility is more than 85%.
The initiatives of General Motors (GM) and Ford to actively promote electric vehicles since the beginning of 2021, as well as the “Biden driven green wave is coming”, are considered the right time for apple to enter the field of electric vehicles.
Based on the fact that the electric vehicle market is expected to reach US $5 trillion or more in the next decade, Wade Bush believes that Apple may benefit a lot from launching its own car. If Apple gets a 5% to 10% market share, apple cars could become another growth pillar for the company, adding $30 or more to its share price.
Mr. Wade Bush expects Apple’s target share price to be $175 over the next 12 months and gives it a “outperform” rating. (Tencent technology reviser / Jinlu)