Analyst at Cowen, Krish Sankar states that iPhone build numbers are increase and the upward trend will continue till the end of 2021. The increase suggests a 21% Y-o-Y growth in iPhone build numbers. On the other hand, the build numbers of the competing Android smartphones have remained the same. “Although iPhone build targets moved upward, Sankar notes that Samsung, Oppo, Vivo, Xiaomi, and Honor forecasts have remained unchanged.”
The new iPhone 13 series is boosting Apple’s growth and iPhone build numbers
Based on high pre-orders of the latest flagship series in China, Sankar states the iPhone 13 is aiding the company’s growth in a stalling smartphone market. He also added that the low iPhone sales in China were “likely a demand pause ahead of the new product launch.” In his note to investors, obtained by AppleInsider, Sankar has increased his iPhone build numbers forecast.
Sankar says that iPhone builds for the third quarter have increased to 51 million units, up from 48 million units. That’s even higher than Sankar’s previous forecast of 51 million builds. The analyst is expecting Q4 2021 builds of 82 million, up from 78 million.
Recently, a Chinese publisher reported that ahead of iPhone 13 launch on September 24, pre-orders for the new series from across the country exceeded 5 million within days and the huge influx of pre-order slowed down Apple’s online store to a crawling speed.
In spite of strong iPhone 13 demand, the analyst is maintaining his iPhone 13 build plan forecast and estimates that AAPL price will hit $180. Currently, the AAPL stock is trading between $147 and $145.
The analyst says the iPhone 13 build plan forecast remains at 90 million to 95 million, up 23% year-over-year, in the second half of 2021.
Sankar is maintaining his 12-month AAPL price target of $180. He arrives at that forecast by applying a 25x earnings multiple to Apple’s core business and a 45x earnings multiple to Services. That leads to a blended 33x price-to-earnings multiple on the new 2022 EPS forecast of $5.30.