Investors have been recently subject to a topsy turvy ride with the uncertainties in the market caused by the COVID-19 outbreak. But, an analyst thinks that the virus that has reached other parts of the globe is a less permanent issue for the Cupertino tech juggernaut and for its iPhone. Another reputable analyst reveals that the COVID-19 would not affect the development of the next-generation iPads and MacBooks.
Apple's Firm Core Business
Wedbush Analyst Daniel Ives shares on his note to investors that the recent COVID-19 issue is not a permanent issue for Apple. He encourages investors to look at the long term effects as well as consider the robust Service business of the Cupertino tech juggernaut. The analyst also mentions in his note that investors should look at what the iPhone 12 5G could bring to the company as well as to the customers.
"This remains a major hand holding time for investors in Apple and clearly there will be some speed bumps along the way as Cupertino navigates the coronavirus outbreak," says the Wedbush analyst. "However, we continue to focus on the golden installed base, pent up iPhone upgrade demand activity, and 5G super cycle on the horizon as core components of our bull thesis, along with the $50 billion+ annual services business," notes Ives.
The Wedbush analyst also predicts that the demand for Apple's flagship smartphone remains strong, with a massive number of consumers waiting for the opportunity to upgrade. Ives estimates of the 920 million iPhone install base, 350 million are in waiting to upgrade. He adds that Apple just needs to introduce a catalyst like the next-generation wireless connectivity support, 5G for consumers to get a new iPhone.
Development Of Next Generation MacBooks and iPads
Meanwhile, TFI Securities Analyst Ming-Chi Kuo reveals in his research note last Mar. 4 that the current COVID-19 outbreak would not affect the research and development of next-generation Apple products. The Taiwan-based analyst believes that the Cupertino tech company would release multiple products that would feature mini-LED technology in the later part of 2020 and six products before 2021 ends.
"We predict that Apple is currently developing six mini-LED-support products," Kuo says in the research note. "Including a 12.9-inch iPad Pro, a 27-inch iMac Pro in 4Q20, a 14.1-inch MacBook Pro (upgraded from 13.3- inch), a 16-inch MacBook Pro, a 10.2-inch iPad, and a 7.9-inch iPad mini in 2020."
Apple is anticipated to launch the iPhone SE 2 or the iPhone 9 this month. Meanwhile, it is expected to release its flagship smartphone series, the iPhone 12 on Sept. 2020.
