JP Morgan’s new investor note states that the sales of the upcoming iPhone 13 series are likely to surpass investors’ low expectations and will earn Apple an impressive 21% jump. The next-generation iPhone 13 series is expected to come out in the usual September launch time.
iPhone 12 series’ launch was delayed by a month due to the COVID-19 pandemic. In spite of the delay, the series had record sales, especially the iPhone 12 Pro and Pro Max models. A new market study reveals that within 7 months of launch, iPhone 12 globals sales crossed 100 million units which achieved Apple its second super-cycle. Based on the impressive earnings leading up to the September launch, the bank has revised its “overweight rating and raised its price target on Apple to $170 from $165 with a potential 21% jump.
Apple expected to reverse its year-to-date underperformance in the second half of 2021 with iPhone 13 launch
JPMorgan’s note viewed by Business Insider states that;
“The upside pressure on volumes for the iPhone 12 series, historical outperformance in the July-September time period heading into launch event, and further catalysts in relation to outperformance for iPhone 13 volumes relative to lowered investor expectations implies a very attractive set up for the shares in the second half of the year and thus expect AAPL shares to outperform the broader market materially in 2H21.”
“We see the iPhone 13 launch as more of the latter, similar to the iPhone 11 cycle, with a multi-year 5G tailwind to the replacement rate and a larger installed base supporting stronger run-rate of annual volumes relative to current investor expectations.”
In addition, the bank has increased its iPhone shipment orders for 2022 to 226 million while investors estimate them to be 210-15 million units. Earlier, it was reported that Japanese investors have “increased the shipments estimate from 82 million to 85 million, and the overall iPhone shipments will increase from 225 million to 228 million.” These market assessments have made the bank conclude that;
“Net net, following a period of limited interest and underperformance in the shares, we believe the tide is set to turn [for Apple’s stock price].”