Is Apple’s 5G iPhone selling? We’re about to find out
Wall Street has been counting on a rush of iPhone 12 sales to supercharge Apple’s earnings. This week, investors will learn whether such predictions are coming true.
The release of every iPhone is accompanied by a significant degree of hype. But there’s an extra unknown this time around, since the iPhone 12 is the first Apple device with 5G connectivity. Some analysts think that will have led to a huge wave of upgrades. Others aren’t sure the 5G rollout is far along enough to inspire such enthusiasm, especially in the midst of an economic downturn.
Apple reports earnings after US markets close on Wednesday. Given the company’s 75% stock rise over the past year — in part due to anticipation about wild iPhone 12 sales — it will be a major market event.
Much depends on demand out of China, according to Wedbush Securities analyst Daniel Ives, putting any comments on the country’s economic comeback in focus.
“China remains a key ingredient in Apple’s recipe for success as we estimate roughly 20% of iPhone upgrades will be coming from this region over the coming year,” Ives said in a recent note to clients.
Microsoft, Facebook and Tesla — all contributors to the recent market rally — are also due to report earnings this week.