2020 will be “the year of the 5G supercycle” for Apple, says analyst Daniel Ives.
From a note to clients that landed on my desktop Sunday:
As we head into the holidays and year-end, Apple is putting the finishing touches on what we would characterize as an historic year for the company and will serve as a launching pad for 2020 to be the “year of an iPhone supercycle”.
A year ago Cupertino was facing major Herculean-like challenges around lagging China demand, tariff escalation on the horizon, increasing competition on smartphones, and trailing Samsung and others in the key 5G race. Investors were throwing in the towel on the name with many on the Street thinking the Apple growth story was over and in the rear view mirror.
Defying the skeptics, Cook in his finest hour in our opinion led Apple to successfully battle through China growth struggles, settle its long standing lawsuit with Qualcomm (and acquire Intel’s Smartphone modem business to catalyze its 5G efforts), develop and bring to market its trifecta of iPhone 11s which has been a major consumer success out of the gates, and most importantly play a game of poker with the tariff China black cloud that worked out in a Picasso-like fashion for Apple.
Maintains Outperform rating, raises price target to $350 from (previous Street-high) $325.
My take: There’s always one guy.