iPhone 12 sales are still strong in U.S., in spite of new iPhone 13 launch in Fall

In its new note to investors, JP Morgan analyst Samik Chatterjee writes that a new survey conducted by Wave7 Research has revealed that iPhone 12 sales are still strong in the United States even with news of the iPhone 13 launch in September. The survey analyzed the sales volume of smartphones across different carriers in June 2021.

iPhone 12

iPhone 12 series launched during the COVID-19 pandemic and despite consumers’ low spending trend, the smartphone series had higher than expected sales, especially the iPhone 12 Pro and Pro Max models. Recently, a new study on mobile handset ‘Market Pulse Service’ by Counterpoint Research found that the global sales of the iPhone 12 series had crossed 100 million units in April 2021. And with that milestone, the company had achieved its second super-cycle, after the first super-cycle with iPhone 6.

At the Q2, 2021 earnings call, CEO Tim Cook said that the 6.1-inch iPhone 12 was the most popular model. Larger display, 5G support, and improved camera were quoted as attractive features during the coronavirus stay-at-home lifestyle.

With better inventory, Apple to report better than expected iPhone 12 sales for Q3, 2021 in July 27 earnings report

The note viewed by AppleInsider, explains that in the current global chip shortage, Apple has better inventory than competing smartphone manufacturers. Therefore, the company is likely to report better than expected iPhone sales for the third quarter of 2021 on July 27. Adding that JP Morgan will continue to monitor the situation, Chatterjeew wrote that;

“Across the stores, representatives are seeing little evidence of customers avoiding iPhone purchases ahead of the iPhone 13 launch, supporting robust volume trends. Apple also appears to be in a better inventory position than Android makers when it comes to chipset and critical component shortages.

The analyst says that Samsung’s market share in June 2021 was down slightly month-over-month. That’s mostly attributable to inventory shortages. Apple’s share of the market during the same period changed very little.”

Last week, AAPL’s share price reached an all-time high of $144, increasing the company’s $2 trillion market value to $2.4 trillion. Chatterjee estimates that in 12-month Apple price target of $165, “which is based on applying a 30x price-to-earnings multiple on a 2022 earnings estimate of $5.61”. And based on current trends, the bank’s investors predict high iPhone 13 sales.

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Addicted to social media and in love with iPhone, started blogging as a hobby. And now it's my passion for every day is a new learning experience. Hopefully, manufacturers will continue to use innovative solutions and we will keep on letting you know about them.

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