Well-known analyst Ming-Chi Kuo said in a report that demand for the iPhone 12 is strong, although that may not have much of an impact on Apple stock. Analyst reports are mixed on what the iPhone 12, the first model with 5G, will mean for Apple stock.
Demand for iPhone 12 looks strong, but it's already priced into Apple stock
According to 9to5Mac, Kuo said demand for the iPhone 12 Pro and Pro Max is better than expected, although it's offsetting weaker sell-through of the iPhone 12 and 12 Mini. UBS analyst David Vogt said in a recent report that demand for the iPhone 12 is already priced into Apple stock, which is why the shares have been rather weak.
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He maintained his Neutral rating and $115 price target on the shares in a recent report. According to Barron's Vogt said a survey conducted through the UBS Evidence Lab showed that intent to buy a new iPhone in the next 12 months moved higher in the U.S., U.K., China, Japan and Germany. He expects Apple to sell 210 million iPhone 12 models in fiscal 2021, although he believes 230 million iPhones are already priced into Apple stock.
He added that purchase intent looks similar to the intent he saw when the iPhone X launched in 2017. Credit Suisse analyst Matthew Cabral also maintained his Neutral rating and $106 price target on Apple stock, pointing out that wait times to buy certain iPhone 12 models from the company online are getting longer.
Other Apple products
Kuo also said he expects redesigns for the Apple Watch and MacBook in the second half of 2021. Further, he said demand for the iPad Air model has been strong. He expects the iPad lineup to remain attractive next year as Apple adds min-LED displays and support for 5G.
Kuo also said demand for the first ARM-equipped Macs from Apple has been stronger than expected. He expects the company to introduce new silicon Macs with new form factors and an industrial design in the second half of next year.
One area in which Apple isn't doing as well, according to Kuo, is with the AirPods. He said shipments for the product are weaker than previously estimated. He expects a decline of 5% to 10% in AirPods sales for the next six months. Kuo is also looking for the AirPods 3 launch to be delayed from early next year to the second quarter.