Shares of Apple Inc. they are down more than 16% from their January highs, but one analyst says investors should take advantage of the decline to take advantage of a “gold buying opportunity”.
Wedbush’s Daniel Ives added Apple AAPL,
on his company’s list of best ideas on Wednesday, writing that there is room for the company to positively surprise Wall Street with its iPhone results this fiscal year.
Apple shares fell 0.2% lower in Wednesday morning’s trading. It has risen 69.4% in the last 12 months, while Dow Jones Industrial Media DJIA,
advanced by 28.6%.
Ives said worries about cuts to iPhone forecasts this year have been squeezing the stock lately, but he sees the opportunity to grow. Although the FactSet consensus now calls for 224 million iPhone units to be sold this fiscal year, Ives claims the company could sell more than 240 million, given strong demand in Asia and a large iPhone base. globally, which are ready for upgrades.
See also: Apple eclipses Samsung as top smartphone maker for first time in four years, says Gartner
He wrote that average selling prices should benefit, as Apple appears to be successful in selling more expensive iPhone models, such as the iPhone 12 Pro and iPhone 12 Pro Max, while the iPhone 12 Mini is “significantly reduced in around global production / demand ”.
Nikkei Asia reported on Wednesday that Apple has made dramatic cuts to its previous iPhone 12 Mini production plans since December, while making “relatively light” cuts to other iPhone models, in part because some components and parts were once designed for the Mini. are transferred to more expensive models.
The new production targets are still slightly above Apple’s deliveries from the same period a year ago, the report said, citing some unnamed sources who said Apple’s cuts come after the company was particularly aggressive with its targets. a few months ago to make sure it had enough components at a time when some were few.
Apple did not immediately respond to a request for MarketWatch comment.
Ives remains optimistic about Apple’s prospects for the iPhone, arguing that the “supercycle party” could continue with the iPhone 13 expected this fall, given the optimistic indications of the supply chain. He has “increased confidence that the iPhone 13 will have a 1 terabyte storage option, which is double the capacity of today’s largest Pro storage capacity,” suggesting that Apple may have more pricing opportunities.
It has a higher performance rating and a target price of $ 175 per share.
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IDC analysts forecast on Wednesday that global smartphone deliveries could increase by 5.5% in 2021, fueled by higher availability of 5G-compatible devices and “recharged demand” for new phones. For 2020, IDC calculated that smartphone deliveries fell by 5.9% from a year earlier.