Wedbush analyst Daniel Ives cited significant interest in Apple’s iPhone 11 among consumers in China in a research note on Thursday.
“We believe China demand is tracking roughly 15%-20% above expectations on iPhone 11 thus far and will continue to be a major driver of strength over the coming quarters,” he wrote after a trip to Asia visiting Apple suppliers.
He estimates that in China alone, there are between 60 million and 70 million iPhone owners whose devices are in what he calls the “window of upgrade opportunity.”
Ives doesn’t believe that the trade war will have much of a negative effect on the company’s phone sales.
He expects Apple to sell 185 million iPhones in fiscal year 2020, while Wall Street expects the company to sell 140 million iPhones next fiscal year, according to FactSet.
MacDailyNews Take: 45 million units is quite the discrepancy! The Street consensus of 140 million is too low.
What’s strange is how everyone was saying the iPhone was boring before anyone had even tried it. Not worth upgrading to… Basically the same iPhone design for the past four years isn’t worth buying… So, why would the iPhone be selling significantly above expectations? Extremely low expectations? Suppose Apple actually had an greatly revised new iPhone with USB-C, reverse charging and 5G with a two-full-day guaranteed battery capacity? Could Apple actually sell 250M iPhones a year? I don’t have a clue. I think mostly the longer battery life would be enough to sell more iPhones to the average consumer.
Some people are so silly with their idiotic predictions and nonsensical questions. The best Apple can do is try to design and sell a high-quality iPhone. It’s up to consumers to make their own choices as to whether it’s worth it or not. Android smartphones are always going to be the most prolific smartphones on the planet no matter what Apple does. Cheaper products always seem to sell to more consumers. Consumers would continue to buy Android smartphones even if their OS never received updates. It will never be about how good iPhones are but more about how cheap Android smartphones are. It really seems as simple as that.
I’m confident Apple will sell a satisfactory amount of iPhones based on internet reviews as mostly everything about the iPhone 11 (all versions) is favorable. To me, that’s a good sign that consumers will be willing to upgrade. I’m not sure if that will boost Apple’s stock price but it doesn’t seem as though it will be driven down because of low iPhone sales.
With all good news for Apple lately, Apple stock will rally after the earnings report which will reach new all time highs.
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