Share: twitterTweet facebookShare

Analysts Say Strong Demand Will Drive Apple Shares Up 32 Percent in 2021

Share: twitterTweet facebookShare

Strong demand for the iPhone 12 will set Apple’s shares up for a 32 percent gain in 2021, say analysts.

Apple shares were higher on Tuesday following a report that the company is increasing production of its 5G iPhones amid surging demand.

Nikkei report showed Apple is planning to produce up to 96 million iPhones, up 30% year-on-year and higher than Wall Street expectations, in the first half of next year. The company may overall sell 230 million older and new iPhone models in 2021, according to the report, above consensus forecasts of 215 million.

Wedbush analysts Daniel Ives and Strecker Backe said in a note on Tuesday (via Business Insider) that the Nikkei article was “another bullish sign of iPhone 12 demand” and supported the so-called “supercycle thesis” which argues many people with older iPhones re ready for upgrades and will buy the new iPhones.

“Based on lead times on the Apple website as well as our checks, we believe pre-orders tracked more than 2x its predecessor iPhone 11 thus far and is a robust start out of the gates for Cupertino on this flagship supercycle product,” the analysts said.

The analysts estimate that 20 percent of iPhone upgrades would come from China in the coming year and said that the country is a “key ingredient in Apple’s recipe for success.”

Ives continues to see “an unprecedented upgrade cycle for Apple with a major holiday season on the horizon over the coming weeks.” He maintained his Outperform rating and $160 USD target on Apple shares.

Share: twitterTweet facebookShare