Carrier wars seen boosting Apple iPhone 12 sales

According to analysts, wireless carriers eager to attract new subscribers to their 5G cellular networks are heavily promoting Apple’s iPhone 12 smartphones, which is likely to provide a lift to Apple’s December-quarter sales.

A sophisticated flat-edge design introduces the Ceramic Shield front cover for the biggest jump in durability ever on iPhone.
With iPhone 12, a sophisticated flat-edge design introduces the Ceramic Shield front cover for the biggest jump in durability ever on iPhone.

Patrick Seitz for Investor’s Business Daily:

Piper Sandler analyst Harsh Kumar raised his iPhone unit sales estimates on Thursday to account for the promotional activity.

He now expects Apple to sell 73 million iPhones in the December quarter, up from his previous target of 65 million units. The additional 8 million iPhones will mean an extra $7 billion in revenue for Apple’s holiday sales quarter, he said in a note to clients.

“The heavy carrier promotions will drive significant upgrades for the iPhone 12 series,” Kumar said. “The iPhone 12 launch has become a subscription battleground for carriers, as they are all offering sizable promotions to keep or add new customers.”

Elsewhere on Wall Street, D.A. Davidson analyst Tom Forte maintained his buy rating on Apple stock ahead of the company’s September-quarter earnings report, due Oct. 29. In a note to clients Thursday, Forte also cited carrier support for iPhone 12 as a positive sign.

MacDailyNews Take: We’ve war-gamed it. In the carrier wars there is one clear winner of every possible outcome: Apple.

Prepare for very strong iPhone 12 sales!

Supercycle

2 Comments

  1. I have tried to switch from AT&T to Verizon in the past and been met with lukewarm reception. Since I get my phone via the apple upgrade program the incentive for Verizon to sign me up doesn’t seem to be there.
    It is also very difficult to find out pricing for service if a new phone is not included.

  2. It honestly doesn’t seem as though big investors see a “supercycle” unless they’re simply waiting until the last minute to start buying shares of Apple. Apple has been holding up well over the last couple of weeks, but slightly less than other major tech stocks. Apple is still holding close to the $2T market cap and that’s a good indication Apple’s value is holding up. I’m not sure what the main catalyst will be, but I’m hoping Apple had a decent Q4 despite the pandemic circumstances. I’m sure no one thinks Q4 will greatly exceed expectations but that’s OK by me. I’m just trying to avoid comparing Apple with any other major tech stocks as Apple performs quite differently in terms of share gains.

    I’m hoping the carrier deals will boost iPhone sales and nearly all the Youtube videos I’ve watched have indicated the iPhone 12 is a decent upgrade for users of older generation iPhones. Even if iPhone 12 sales don’t get a quick start, it looks like it will be very popular and will slowly build up sales over time. That A14 Bionic SoC is no joke, so any Android smartphone with less than a SD 865 is going to be left in the dust when it comes to background processing.

    So, the holiday season looks good for Apple, especially with the Apple Silicon Macs likely appearing next month.

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