Apple (AAPL) iPhone 12 gross sales within the U.S. seem to have gotten a lift in March from customers spending tax refunds and financial stimulus checks, a Wall Avenue analyst says. Apple inventory rose on Friday.
KeyBanc Capital Markets analyst John Vinh mentioned his agency’s information reveals a “stable pickup” in iPhone gross sales in March. U.S. iPhone gross sales final month elevated 31% from February, vs. the three-year common enhance of 1% for the interval, he mentioned. On a year-over-year foundation, iPhone gross sales jumped 109%.
“IPhone 12 sell-through noticed a wholesome seasonal enhance spurred by tax refunds and reopening catalysts,” Vinh mentioned. These catalysts embrace authorities stimulus funds and elevated Covid-19 vaccinations, he mentioned.
Amongst iPhone 12 fashions, the Professional and Max variations proceed to see robust demand, offsetting weak demand for the entry-level Mini handset.
Apple Inventory Rises On iPhone 12 Gross sales Information
“General, carriers’ suggestions signifies the demand for iPhone 12 continues to surpass the prior iPhone 11 cycle, regardless of weak spot related to the 12 Mini,” Vinh mentioned.
The information is optimistic for Apple inventory in addition to element suppliers. Vinh reiterated his obese, or purchase, scores on Broadcom (AVGO), Cirrus Logic (CRUS), Qualcomm (QCOM), Skyworks Options (SWKS) and Synaptics (SYNA). He stored his sector weight, or impartial, score on Qorvo (QRVO).
On the inventory market at present, Apple inventory rose 2% to 132.99.
Elsewhere on Wall Avenue, Mizuho Securities analyst Vijay Rakesh warned that smartphone element provide shortages may crimp gross sales within the June quarter. In a notice to purchasers, he lowered his second-quarter estimates for wi-fi chipmakers Skyworks, Qorvo and Qualcomm.
Nonetheless, he has a bullish outlook for handset gross sales within the second half of 2021. He raised his value targets on shares of Skyworks and Qorvo on expectations for a second-half rebound. Rakesh has purchase scores on chip shares Broadcom, Micron Expertise (MU), Qorvo, Qualcomm and Skyworks.
Apple Faces Robust Second-Half 2021 Comparisons
In the meantime, Apple inventory bear Jeff Kvaal, an analyst with Wolfe Analysis, reiterated his underperform score. He stored his value goal of 115 on Apple inventory.
In a notice to purchasers Friday, Kvaal mentioned residual energy in high-end iPhone 12 gross sales ought to ease within the present quarter. Apple additionally will face robust year-over-year gross sales comparisons for Macs, iPads and the App Retailer beginning within the June quarter. These classes benefited from the work-from-home and learn-at-home traits spurred by the Covid-19 pandemic, he mentioned.
Comply with Patrick Seitz on Twitter at @IBD_PSeitz for extra tales on shopper know-how, software program and semiconductor shares.
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