Apple CEO Tim Cook poses next to an image of the new iPhone 11.
Kena Betancur | AFP | Getty Images
Wedbush Securities analyst Dan Ives said in a note on Monday that investors should “focus on Apple during the liquidation”.
Apple stocks fell about 5.3% early Monday morning to $ 273 a share, down from the 52-week high of $ 327.85 as markets continue to crater. But, Ives says investors should “focus on the technology winners for the next 5-10 years, including Apple at the forefront.”
Ives said the current supply chain problems caused by coronaviruses are a “short-lived shock event” and that demand for the iPhone will begin to normalize in the second half of the year.
“While supply chain issues and changing demand in China are fundamental short-term headwinds, our main goal is that the first part of this massive upgrade opportunity on the horizon with 5G in head should still be between 215 million and 220 million units. on FY21, “said Ive.
“Ultimately, as the supply chain and demand evolves over the next few quarters, we believe that Apple, based on a change in schedule, could potentially be shipped north of 231 million iPhones during from exercise 21 in a bullish scenario, which will beat its previous record set in FY15. “
The note suggests that about 60 to 70 million iPhone users in China are ready for an upgrade and that Apple could “pick up the pace to convert at least half of these customers as of the June quarter.” .
Apple generally unveils its new iPhones in September and is expected to include new 5G chips this year, which will ultimately provide iPhone owners with faster data speeds as operators continue to deploy new 5G networks. Ives said Wedbush maintains its outperformance rating for Apple.