Investment Bank: iPhone 12’s Super Cycle Propaganda has become a reality

Investment bank Wedbush analyst Daniel Ives on Monday (25th) expects that Apple will announce amazing iPhone shipments and strong Chinese demand, so the target price of Apple has been raised to US$175 per share.

Investment bank Wedbush analyst Daniel Ives released a research report to investors on Monday, writing that the strong earnings report will confirm that "iPhone 12’s super-cycle promotion has become a reality."

Wall Street currently predicts that Apple will sell 220 million iPhones in 2021, but Daniel Ives predicts that Apple’s current sales this year is expected to exceed 240 million iPhones. More specifically, there may be an amazing sales record of 250 million iPhones. Easily beat the peak sales record of 231 million units set in 2015.

Daniel Ives predicts that about 20% of the overall iPhone upgrade demand will come from China. China has considerable strength. This positive trend is expected to continue until 2021.

Similarly, analysts at investment bank Cowen also believe that China is a bright spot for Apple's sales. The latest CAICT data shows that Apple sold 6 million iPhones in China in December last year, with a market share of about 20%, which is Apple's best record in many years.

Daniel Ives raised Apple’s target price from the previous US$160 per share to US$175 per share, which is 25% higher than the closing price of US$139.07 per share last Friday, and maintains Apple’s "outperform" stock rating. Boosted by the Wedbush bullish report, Apple's share price rose by more than 2.77% on Monday to $142.92 per share, a record high.

Daniel Ives believes that if Apple continues its current iPhone sales rate, Apple's market value may exceed $3 trillion this year. Apple is expected to announce its latest financial results on Wednesday (27th) Eastern time (Thursday, Taipei time).