Apple produces 116 million iPhones in first half of fiscal 2020

Netease Technology News on January 28, according to foreign media reports, analysts at financial services company Cohen believe that Apple’s strong performance in the first fiscal quarter of fiscal 2020, the second fiscal quarter’s results will also be impressive. There are signs that iPhone orders have generally increased compared to 2019.

Cohen analyst Krish Sankar estimated in a report to investors that Apple produced 70 million iPhones during the holiday shopping season. Among them, iPhone 11 and iPhone 11 Pro models accounted for 74%, about 52 million.

In the first quarter of 2020 (Apple’s second fiscal quarter), Sankar predicts that Apple will produce 46 million different models of iPhones, an increase of 12% year-on-year. Among them, the iPhone SE 2 is estimated to account for 6 million units, and Sankar estimates that it will cost about $ 475. In the first and second fiscal quarters of fiscal 2020, Apple will produce 116 million iPhones.

Sankar predicts that the build specifications of the iPhone SE 2 will be roughly equivalent to the original iPhone SE. The original iPhone SE was released after the iPhone 6s in March 2016 and is still being produced in India. In addition, Sankar believes that in the second quarter of 2020 (Apple’s third fiscal quarter), Apple will produce about 43 million iPhones.

On January 20, Sankar raised Apple’s target stock price to $ 350, driven by its services business and the upcoming new iPhone. Looking ahead, iPhone SE 2 and iPhone 5G 5 will add momentum to iPhone production growth year-on-year. At the same time, the service business will continue to maintain strong growth.

Sankar wrote: “Strong demand for the iPhone 11 coupled with investor optimism in the smartphone market has led to expectations that iPhone sales will increase in FY 2020, especially with the launch of the iPhone SE 2 and 5G iPhone .It is expected that the service business revenue will maintain strong growth and the gross profit margin will be generally stable (over 60%), as the increasing sub-item revenue will continue to drive Apple’s expansion into more areas. “

Sankar predicts that Apple will ship approximately 195 million iPhones in fiscal 2020. Although the 5G iPhone will contribute to this extent to a certain extent, most of its impact will be revealed in fiscal 2021.

At the same time, Sankar believes that, based on various market forces, Huawei’s mobile phone output may fall by 10% year-on-year, and Samsung’s output is expected to be flat with the same period last year.

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