Apple Betting On Sales Of 75M 5G iPhones In Q4
Apple Inc. is counting on demand for its 5G iPhones for the rest of the year.
Bloomberg News reported the Cupertino, California-based technology giant has asked manufacturers to build at least 75 million devices.
That number nearly matches its 2019 launch, a sign that Apple has confidence the company’s best-selling product will sustain COVID-19 and the recession.
Apple expects to ship as many as 80 million units in 2020, according to the report, which cited sources. The company plans to launch four new models that will feature 5G speed, new designs and more screen sizes choices, sources told Bloomberg.
In addition, Apple is also planning to unveil an iPad Air, two Apple Watches its first over-ear headphones not manufactured by Beats Electronics LLC, an Apple subsidiary founded by music producer and rapper Dr. Dre and Jimmy Iovine that primarily make headphones and speakers.
Apple declined to comment.
Last summer and in 2018, suppliers prepared to build components for as many as 75 million iPhones. This year’s target of up to 5 million more is bullish, Bloomberg noted.
The iPhone comprises about half of Apple’s sales and typically exceeds 60 percent during the holidays.
Last month, Apple became the first publicly-traded company in the U.S. to exceed $2 trillion in market value, a staggering accomplishment that shines a light on the iPhone, iPad, smartwatch and Mac maker’s status in the world economy.
At the end of last year, Apple shares closed at $72.91. On Sept. 1, the stock opened at $132.76, an 82 percent rise.
KGI Securities analyst Ming-Chi Kuo said global shipments of the iPhone could drop by as much as 30 percent if Trump carries out his threat to ban the popular apps.
In July, Apple reported the iPhone returned to growth after diminishing for the last six consecutive quarters, generating $26.42 billion in revenue for the company’s fiscal third quarter, which ended June 27. International sales accounted for roughly 60 percent of Apple’s latest iPhone revenue, the company said.
That’s well ahead of the $22.2 billion that analysts had expected, according to MarketWatch.