Apple climbs as Wedbush says it will benefit from ‘once in a decade’ iPhone 12 launch, which drives strong demand


  • Apple jumped 4% on Monday ahead of its “Hi, Speed” event on Tuesday, where it is slated to officially launch its next-generation iPhone 12.
  • According to Wedbush, Apple’s iPhone 12 will represent a “once in a decade” launch as it officially launches its 5G supercycle.
  • Based on channel checks performed by Wedbush, Apple and its suppliers anticipate “increased” demand for its 6.7-inch iPhone 12 Pro Max model.
  • Strong demand for Apple’s more expensive iPhone 12 models will help push iPhone average selling prices up, which could cause inventory to rise, according to a Morgan Stanley note.
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Expectations are high for Apple’s expected iPhone 12 launch on Tuesday.

According to a Sunday note from Wedbush, the event represents a “once a decade” opportunity for Apple to capitalize on its huge iPhone installed base of nearly 950 million users.

Wedbush isn’t the only one who thinks tomorrow’s event is a big deal for Apple.

Morgan Stanley said in a note last week that he expects tomorrow to be “the biggest iPhone event in years.”

Apple shares jumped 4% to $ 121.71 on Monday, leading the market higher and helping tech stocks soar.

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Wedbush expects four different iPhones to be announced tomorrow, including a 5.4-inch iPhone 12 mini and a 6.7-inch iPhone 12 Pro Max, which would represent the largest iPhone screen ever. According to Morgan Stanley, the 6.7-inch iPhone 12 could cost as much as $ 1,399.

This potential price of $ 1,399 for the larger iPhone 12 could help boost the average selling price of iPhones, which has led Morgan Stanley to raise its profit estimates for Apple as it believes the Wall Street consensus remains too low.

“Our price and mix analysis suggests that our previous iPhone FY21 ASP forecast of $ 754 was too low, and we are raising our iPhone FY21 ASP estimate to $ 772 (+ 5% Y / Y),” said Morgan Stanley.

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Demand for the most expensive and biggest iPhone ever is expected to be strong, which could help Apple stocks reach new highs.

“We are seeing that Apple and its Asian suppliers anticipate increased demand for the larger 6.7-inch model,” Wedbush said, adding that he saw Apple selling 75 million iPhone 12s with an “expandable target” of. 80 million units.

Wedbush sees a 28% rise in Apple shares as it expects the stock to hit $ 150.

“With 5G now in the cards and around 40% of its installed base of ‘gold jewel’ iPhones not having upgraded their phones in the past 3.5 years, Cook & Co. has prepared the ground for a 5G supercycle product release that should drive actions forward. our opinion, ”Wedbush said.

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