The iPhone supercycle that kickstarted with the launch of Apple Inc’s (NASDAQ: AAPL) iPhone 12 will likely continue well into 2022, according to analysts at Wedbush Securities.
The Apple Analyst: Daniel Ives has an Outperform rating on Apple and a 12-month price target of $175, with the bull-case price target at $225.
The Apple Thesis: The next iPhone iteration, namely the iPhone 13, will likely be launched around September, Ives said. Initial Asia supply chain builds for iPhone 13 are in the 100-million-unit range compared to the firm’s initial iPhone 12 reads of 80 million, he added.
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“While this number will clearly move around over the coming months, we believe this speaks to an increased confidence with Cook & Co. that this 5G driven product cycle will extend well into 2022 and should also benefit from a post-vaccine consumer “reopening environment,” Ives wrote in the note.
The iPhone 13 will likely have a 1 terabyte storage option, double that of the current highest Pro storage capacity, the analyst said. It will also include a number of enhancements, with Lidar across all iPhone 13 models.
Therefore, the iPhone 13 could be a “game changer” indicating the supercycle party in Cupertino is going well in 2022.
AAPL Price Action: At last check, Apple shares were rising 4% to $126.20.
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