Apple stock has gained tremendously since the first iPhone upgrade supercycle in 2014. Now, the iPhone 12, thanks to 5G, has triggered a new upgrade supercycle that could be much larger than the previous one.
A Counterpoint Research study in 2019 found that consumers were willing to spend 20% more on 5G smartphones.
Apple consumers got a taste of bigger screens for the first time with the iPhone 6. While the standard device had a 4.7-inch screen, the Plus model was even bigger at 5.5 inches. Not surprisingly, Apple consumers upgraded in droves…
Unlike the last iPhone supercycle, which was led by a change in the form factor of smartphones, the current one is being driven by the arrival of 5G wireless technology. Telecom carriers around the globe are rolling out 5G networks at a rapid pace, and that’s encouraging customers to buy devices to take advantage of the fast speeds offered by the new wireless standard… The iPhone 12 is moving the needle in a big way for Apple. The device has sold 100 million units within just the seven months since it launched, mirroring the initial sales trajectory of the iPhone 6.
However, investors shouldn’t forget that this is just the beginning of the latest upgrade cycle. Counterpoint Research points out that the iPhone 12’s installed base stood at 16% in the first quarter of 2021, which means that 84% of Apple’s customers have yet to upgrade to a 5G smartphone. That’s a huge number, as Apple CEO Tim Cook disclosed in January this year that there are more than 1 billion iPhones in use globally.
MacDailyNews Take: Yes, this is a multi-year supercycle, which bodes well for Apple stock.
Apple seeing strong post-Christmas iPhone 12 Pro demand bolsters the case for a multi-year Mother of All iPhone Supercycles. — MacDailyNews, December 31, 2020