It’s been over 4 months since Apple launched iPhone 12 and potential buyers expecting some kind of price drop or discount on iPhone 12 is quite obvious now. Looks like their wait is going to be much longer than expected.
Under Captain Cook’s leadership, Apple’s much-criticised iPhone 12 is about to enter a “supercycle” – a year in which dramatically more people than usual upgrade to the latest models.
According to supply chain insights by Daniel Ives and Strecker Backe of Wedbush, Apple’s production of the iPhone 12 generation is slated to continue a strong trend. The report, as examined by AppleInsider, has claimed that the Cupertino-based giant is all set to enjoy the “supercycle” ride from elevated production levels all through to the roll-out of the iPhone 13.
These indicators are convincing enough for Apple and its associates to refrain from offering any discount on iPhone 12. In fact, it’s quite unlikely that there will be any price drop on iPhone 12 from Apple’s side as well; blame the unprecedented sale of iPhone 12 that is expected to continue in 2021 until the launch of iPhone 13.
Going by the archetypal patterns, Apple’s production cycle commences with relatively higher-order levels initially, before reducing roundabout springtime. While the dip is primarily down after a spendthrift holiday shopping season, the note to investors by analysts at Wedbush seems to gauge a lesser drop in the production level this year.
Amidst claims that the robust upcoming launch trend is echoing the upward curve à la iPhone 6 in 2014, both analysts Ives and Backe have insisted that the reductions in iPhone production are only tweaked to near-term builds. With Apple looking buoyant on productions after supply checks post the Chinese New Year, it is anticipated that Apple could build anywhere between 56 million to 62 million iPhone units, as compared to previous checks informing of numbers being between 60 million to 70 million in the ongoing quarter, ending in March.
Things are bright for the June ending quarter too, with initial iPhone production numbers forecasted to be 40 million units’ whereabouts.
The demand and price goes hand in hand. With the strong projection of iPhone 12 sales by independent research firms and analysts, it’s quite convincing that prospective buyers, waiting for a long time to see any kind of price drop or discount on iPhone 12, will have to satisfy themselves with Cashback offers on iPhone 12.
Annually, Wall Street is optimistic about Apple producing a staggering 220 million iPhone units in 2021. Wedbush has raised even this bar, anticipating numbers to rocket on the right side of 240 million iPhone units based on how the current production trajectory is panning out.
The vogue popularity levels and sales of the much loved iPhone 12, as projected to continue throughout the entirety of 2021, as per Wedbush’s analysis, could also help propel Apple’s market capitalization to a whopping $3 trillion by the end of this year.
Having said that, the sales of iPhone in China will be a critical factor going forward for Apple to beam up its “supercycle”, as the Asian region is expected to be a potential source of 20% of iPhone upgrades over the course of 2021.
The positive strength of demand in the Chinese land has much to do with the successful way Apple CEO Tim Cook has navigated the terrain. Overcoming lagging demand, rising tariffs, and increased competition n China, Cook’s stellar leadership had industry analysts cooing for buying Apple’s stock as early as December 2019, all in hopes of cashing in on the “supercycle”.
As for the present times, a note from JP Morgan is also further evidence of how well Apple is placed to enjoy a very strong iPhone cycle. A February 25 note from the financial services holding company recalibrated its iPhone shipment figures for 2021 from 236 million initially to 230 million, which still augurs a 13% increase in volume from the year 2020.
First reads from the initial supply chain builds from JP Morgan’s report for the iPhone 13 lot is expected to rise to 100 million, up from the 80 million reads seen at the same time last year for the iPhone 12. Even if this number could change with future developments, it would still represent a 25% YoY increase in production numbers.
Potentially, Apple could well leverage the 5G driven product cycle deep into 2022, reaping the benefits of post-vaccination consumer enthusiasm. While excitable rumours about the iPhone 13 to include a 1TB storage option, LiDAr continues to do the rounds, the hype is Apple’s to justify.
All it has to do is ride the good waves to completion.
So, if you are among the ones waiting for the best offer on iPhone 12 to pocket it at the right time, either you have to wait for the launch of its successor or satisfy yourself with the cashback on iPhone 12 as it’s going to the only offer available for iPhone for a very long time.