Apple plans to cut production of the iPhone, but analysts say the recent stock selloff is a “golden opportunity to buy.”

Apple Pal Inc. No shares are up more than 16% from their January highs, but one analyst has argued that investors should take advantage of the brawl to seize the “golden buying opportunity”.

Daniel Ives of Wedbash added Apple Paul AAPL,
On Wednesday, he wrote in his company’s “Best Ideas” list that there is room for the company to make a positive surprise to Wall Street with its iPhone results this fiscal year.

Shares of Apple Pal are down 0.2% in Wednesday morning trading. It has rallied 69.4% in the last 12 months, while the Dow Jones Industrial Average DJI,
+ 1.11%
Increased 28.6%.

Ives said concerns about cuts to this year’s iPhone forecast have pushed the stock up recently, but it sees an opportunity to tumble. Although the Factset consensus now calls for ૨44 million iPhone units to be sold this fiscal year, Ives argues that, given the strong demand in Asia and the large base of iPhones globally, which is suitable for upgrades, the company could sell more than 240 million.

See also: Apple will take on Samsung as the top smartphone vendor for the first time in four years, says Gartner

He wrote that average sales prices should benefit as Apple succeeds in selling more expensive iPhone models such as the iPhone 12 Pro and iPhone 12 Pro Max, while the iPhone 12 Mini “is significantly reduced around global production / demand. “

Nikkei Asia reported on Wednesday that Apple had been making dramatic cuts to its previous iPhone 12 Mini production plan since December, while other iPhone models were making “comparatively lighter” cuts, in part because some parts and parts were once made for the Mini. Is. Expensive models.

The new production target is still slightly higher than Apple’s exports of the same period a year ago, the report said, citing some anonymous sources as saying the company cut Apple’s momentum to make sure the company could be particularly aggressive with its targets months ago. has come. Enough ingredients at a time when some were in short supply.

Apple did not immediately respond to a request for comment.

Ives is excited about Apple’s iPhone prospects, arguing that the “supersycle party” could continue with the iPhone 13, given the signs of this optimistic supply-chain. “Confidence has increased that the iPhone 13 will have a 1 terabyte storage option that is twice the top Pro storage capacity today,” he said, suggesting that Apple could offer a more affordable opportunity.

It has an outperform rating and a target of 5 175 on the stock.

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IDC analysts predicted on Wednesday that overall smartphone shipments could increase by 5.5% in 2021, fueled by greater availability of 5G-enabled devices and “paint-up demand” for new phones. For 2020, IDC calculated a 5.9% drop in smartphone shipments over the year.