According to Morgan Stanley analyst Katy Huberty, Apple’s U.S. suppliers reported stronger than expected revenue and earnings in the past week, which is a sign of strong iPhone 12 demand.
Seven Apple suppliers, including Qualcomm, Texas Instruments, Qorvo, and Cirrus Logic, reported earnings that surprised to the upside and beat consensus estimates by an average of 7%. Those suppliers also issued guidance above consensus by about 13% on average, implying a 12% quarter-over-quarter revenue growth after three years of flat seasonality growth.
Huberty points out that the delayed launch of the iPhone 12 mini and iPhone 12 Pro Max could explain this better seasonality, but supplier commentary also indicates that demand is exceeding prior expectations.
Huberty notes that lead time for the iPhone 12 Pro remain flat week-over-week at 25 days, the longest of any iPhone model at this point in the cycle. The analyst says that supply chain data and longer lead times support Morgan Stanley’s above consensus iPhone shipment forecast of 220 million units for the 2021 calendar year.
MacDailyNews Take: The Mother of All iPhone Super Cycles is now underway in very healthy fashion with strong iPhone 12 Pro and Pro Max demand!