Apple Has Ordered Roughly 80 Million iPhone 12 Units For H2 2020 Reports Firm
Cupertino tech giant Apple Inc (NASDAQ:AAPL) is widely expected to equip its iconic smartphones, the iPhone lineup, with 5G internet connectivity this year. The move will come after Apple's competitors in the space, such as Samsung, have introduced the feature in the devices, and after it's missed the early way 5G adoption in China. The decision to wait before introducing 5G on the iPhone falls in line with Apple's longtime approach of making its users wait for key upgrades as the company takes its time. Additionally, given Qualcomm's dominance in the 5G smartphone modem space, Apple first had to iron out its tussles with the San Diego-based smartphone chip giant.
Now, a report from Wall Street is speculating on Apple's orders for the iPhone 12, the name that its next-generation of smartphones have been assumed to launch under.
Apple Orders 75 million - 85 million iPhone 12 Units For Second Half Of This Year - Marking For Roughly 41% of Projected Shipments For the Year
In a fresh report sent out to investors, Nomura securities is out with some estimates for this year's iPhone upgrades. Apple's 2020 iPhones, tentatively dubbed as the 'iPhone 12' will feature 5G if the plethora of reports floating around bear fruit. The smartphones will launch at a time when the company is struggling to maintain revenue growth with the lineup which contributed to more than 50% of its revenue at one time.
The report states that for the second half of the calendar year 2020, Apple (NASDAQ:AAPL) has ordered between 75 million - 85 million 5G iPhone 12 units. Estimates provided by investment bank J.P. Morgan last year put Apple's iPhone unit shipments for the fiscal year 2019 at a low 189 million, with the bank expecting the company to ship approximately 207 million iPhones in its fiscal year 2021, the year in which the iPhone 12 will be launch. The company is currently in its fiscal year 2020, the first quarter results of which it is set to report on the 28th of this month.
The second half of this year will include Apple's all-important holiday quarter, which results in a hefty amount of iPhones shipped by the company. In addition to reporting about Apple's iPhone 12 orders, Nomura is also out with its estimates for the device's bill-of-materials. The details related to this corroborate a report by analyst Ming-Chi Kuo earlier which stated that the price of the iPhone's components will rise due to 5G. As per the details, this year's iPhone's bill-of-materials will rise by approximately $40-$80, and Nomura believes that the rise will hamper device adoption.
As Apple continues to soar to new heights on the open market, some investment funds are ramping up their holdings in the company. One of these, Wedge Capital, massively upped the stakes in Apple at the tail-end of last year. Documents seen by Wccftech reveal that the fund bought 162,590 Apple shares recently, upping its stake from 8.764 shares to 171,354. Wedge Capital, it seems, is very positive about Apple's future.
Apple Inc (NASDAQ:AAPL) is trading at $315.79 at the time of writing, up by 0.17% over yesterday's close and 0.37% short of its one-year high share price of $316.96.
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