(Seeking Alpha) – Loup Ventures says the first wave of Apple (NASDAQ:AAPL) 5G phones puts the ball in carriers’ and developers’ court.
“While we believe it will take carriers years to build a compelling 5G infrastructure, Apple is ready today with a lineup of phones that should enjoy a three-year upgrade cycle, compared to a typical one-year duration. Additionally, the company continues to advance augmented reality,” write Gene Munster and David Stokman.
As expected, the firm is positive on the upside for sales.
“5G speed is only one factor in a consumer’s upgrade decision. The age of the phone is another factor, and iPhone owners have been holding on to their devices longer. We believe the number of iPhones that are three years or older has increased by 90m units over the past year, which provides a tailwind for iPhone demand in the coming year. We remain comfortable with our 15% iPhone unit growth estimates (in line with the Street) for FY21, which would be an increase from 1% in FY20.”
Apple trades a bit off its peak price-to-sales ratio. Will that metric get stretched out?