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Referring to the increasing demand for the iPhone, Dan Ives said Apple could have sold about 90 million iPhones by the December quarter.
Apple Inc (NASDAQ: AAPL) gained 2.77% after investment firm Wedbush analyst Daniel Ives increased its price target on the technology company from $160 to $175. The analyst said he expects Apple to deliver “eye popping” earnings results in its Q1 2021 fiscal year. Notably, Apple would be releasing its next earnings result for the first-quarter fiscal year after trading closes on the 27th of January.
Apple is currently at after-hours trading of $143.35, a 0.28% increase over its previous close of $142.92. The technology company has been surging all year. AAPL has advanced 85.04% in the last one year. According to data provided by MarketWatch, the technology giant has jumped by 7.71% in its year-to-date record. The data further revealed that Apple had gained 24.22% in the last three months and 4.56% over the past month. Apple is also up 12% in the last five days.
Wedbush Analyst Is Bullish on Apple
In addition to Ives’ new price target on Apple, the analyst is also bullish that the tech giant could surge up to $225. Referring to the increasing demand for the iPhone, the analyst said Apple could have sold about 90 million iPhones by the December quarter. He also added that the technology giant would continue to sustain its increase in iPhone sales through March and June quarter. According to a report by The Motley Fool, Ives added:
“We believe based on the current trajectory and in a bull case Cupertino has potential to sell north of 240 million units (~250 million could be in the cards- -an eye-popping figure) which would easily eclipse the previous Apple record of 231 million units sold in [fiscal year 2015].”
The Motley Fool report further said that about 350 million iPhone users could upgrade their phones in 2021. Considering the new 5G feature included in the iPhone 12, iPhone could sell 89% more phones in 2021, up from 185 million sold in 2019.
The Wedbush analyst also analyzed the firm’s expectation on iPhone sales:
“With our estimation that 350 million of 950 million iPhones worldwide are currently in the window of an upgrade opportunity, we believe this will translate into an unprecedented upgrade cycle for Cook & Co. and represents a ‘sweep the leg’ moment against the lingering bear camp.”
Furthermore, Ives is expecting that the demand for iPhone upgrades in China should climb 20%. The analyst acknowledged the “considerable strength from the China region.”
Remaining bullish on Apple, Ives said he maintains his “outperforming” rating on Apple’s stock. Also, Ives expects Apple to continue to pull in increase and eventually record more than $3 trillion in 2021.