On Wednesday, AAPL stock valued the company at over $2 trillion. On Thursday, it became the first first to ever close a trading day with that valuation. Some might think that is that top of the market, however, bullish Wedbush analyst Dan Ives thinks that the company is entering an iPhone “supercycle.”
AAPL in iPhone ‘Supercyle’
In a new note for clients, seen by Cult of Mac, Mr. Ives wrote:
While the soft macro and COVID backdrop are weighing on near-term consumer demand trends, Apple has a ‘once in a decade’ opportunity over the next 12 to 18 months as we estimate roughly 350 million of Cupertino’s 950 million iPhones worldwide are in the window of an upgrade opportunity. China remains a key ingredient in Apple’s recipe for success as we estimate roughly 20% of iPhone upgrades will be coming from this region over the coming year. To this point we are seeing considerable strength from the China region over the last few months, a dynamic we expect to continue heading into the next 6 to 9 months.
Furthermore, Mr. Ives believes that the company could ship 90 million pairs of AirPods in 2020, versus 65 million last year. The note also indicates positivity about Apple’s increasing development of subscription services.