Apple climbs as Wedbush says it will benefit from ‘once in a decade’ iPhone 12 launch that spurs strong demand

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  • Apple surged 4% on Monday ahead of its “Hi, Speed” event on Tuesday, where it’s expected to launch its next-generation iPhone 12.
  • Wedbush said Apple’s iPhone 12 would represent a “once in a decade” launch, kicking off its 5G supercycle.
  • Wedbush said that based on its channel checks, Apple and its suppliers are anticipating “stepped-up demand” for its 6.7-inch iPhone 12 Pro Max.
  • Morgan Stanley said in a note last week that strong demand for Apple’s higher-priced iPhone 12 models could help boost the iPhone’s average selling price, leading to more upside for the stock.
  • Visit Business Insider’s homepage for more stories.

Expectations are high for Apple’s “Hi, Speed” event on Tuesday.

Wedbush said in a note on Sunday that the event, where Apple is expected to launch the iPhone 12, represented a “once in a decade” opportunity for Apple to capitalize on its massive iPhone install base of nearly 950 million users.

Wedbush isn’t alone in thinking that the event will be a big deal for Apple. Morgan Stanley said in a note last week that it expected it to be “the most significant iPhone event in years.”

Shares of Apple jumped 4%, to $121.71, on Monday, leading the market higher and helping technology stocks surge.

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Wedbush said it expected four new iPhones, including a 5.4-inch iPhone 12 mini and a 6.7-inch iPhone 12 Pro Max, which would be the largest iPhone display ever.

Video: Investors on what a new iPhone could do for Apple’s stock price (CNBC)

Investors on what a new iPhone could do for Apple’s stock price



Morgan Stanley said the 6.7-inch iPhone 12 could cost as much as $1,399. Such a price could help raise the iPhone’s average selling price, leading Morgan Stanley to increase its earnings estimates for Apple and suggest the Wall Street consensus was too low.


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“Our pricing and mix analysis suggests our prior FY21 iPhone ASP forecast of $754 was too low, and we raise our FY21 iPhone ASP estimate to $772 (+5% Y/Y),” Morgan Stanley said.

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Demand for the larger, higher-priced iPhone is expected to be strong, which could help shares of Apple reach new heights.

“We are seeing Apple and its Asian suppliers anticipate stepped-up demand for the larger 6.7-inch model,” Wedbush said, adding that it sees Apple selling 75 million iPhone 12s, with a “stretch goal” of 80 million units.

Wedbush said it sees 28% upside in shares of Apple, as it expects the stock to hit $150.

“With 5G now in the cards and roughly 40% of its ‘golden jewel’ iPhone installed base not upgrading their phones in the last 3.5 years, Cook & Co. have the stage set for a supercycle 5G product release which should drive shares further in our opinion,” Wedbush said.

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