The global pandemic won’t stop the new iPhone.
Apple (NASDAQ: AAPL) still plans to release a 5G iPhone, according to one well-regarded investment analyst.
The iPhone release is expected to line up with nationwide rollout of 5G in late 2020.
It’s starting a 5G Gold Rush – bringing new 5G devices to millions of people.
The outbreak in China may be coming to an end. Yet the pandemic is still spreading rapidly in the U.S.
Apple designs its iPhone in Cupertino, California. Yet all the manufacturing happens in China by Foxconn. And the closure of factories and disruption to the supply chain may cause some delays.
Apple typically launches a new iPhone every year in September.
An analyst at Instanet says the 5G iPhone is now running on a four- to six-week delay.
Meanwhile, another Apple analyst at TF International Securities now expects that the company may stagger its release of the new 5G iPhone 12. This could include some models being released in October, while others could be delayed until the fourth quarter or early 2021.
Apple has told suppliers to plan for 213 million iPhones over the next year. That would mark a 4% increase in smartphones over the prior year.
Analysts at Evercore give Apple shares a $325 price target. And the firm says it’s possible that the stock could reach $500 per share.
“We think Apple continues to offer the best risk / reward in large-cap tech and long-term investors should use any further Covid disruption to add to positions,” explained an Evercore client note.
Apple shares are down 18% from the all-time highs.
There’s concern that the current recession may dampen consumer interest in the new iPhone. Smartphones are typically a discretionary purchase.
iPhones are among the more expensive smartphones. And that means consumers may elect to delay a purchase until the economy improves.
Yet the current economic downturn is widely expected to be short.
By late 2020 the U.S. economy should be experiencing a strong rebound. And that could line up nicely with Apple’s planned release of the new 5G iPhone.
Yours in Health & Wealth,