This is Apple’s biggest gain since July as the iPhone maker is set to launch its first-ever 5G enabled iPhone device.
Apple Inc (APPL) is closing towards launching its latest iPhone 12 and due to high anticipation of this new launch, the share price of Apple surged on Monday hitting the highest mark since July.
Apple is expected to unveil the first major redesign of the iPhone’s exterior since 2017. It is predicted that the company will launch four different variants of iPhone this year with specifications varying from one variant to another, based on price and size. The high anticipation lies with the company releasing its 5G cellular device, which is the future of internet and cellular devices.
Apple gained up 6.35% on Monday as the investors await the company’s latest product launch expected to release new 5G enabled iPhone 12. This was the first time APPL surged past 6% since July 31, when Apple shares rallied to 10.47% followed by its strong Q3 results.
The investors look enthusiastic about Apple’s upcoming event. On Monday, Apple added +$7.43 to its stock price, trading at $124.40 after opening the session at $120.06.
Following the bullish momentum, APPL traded on a higher side in the premarket on Tuesday as the stock kicked off the day at $125.27. However, as we write this, Apple, Inc. (APPL) was trading at $123.65 slightly on a lower side down by 0.62%.
Despite a slight dip today, the investors are waiting for the big event and there is a lot of expectations from the investment community as well as consumers of iPhone.
An analyst from Morgan Stanley, Katy Huberty stated in a note that they expect Apple’s launch to be the most significant iPhone event in years. Huberty estimates that Apple would ship around 220 million iPhone devices during its fiscal 2021, 22% up year over year.
Wedbush Securities thinks that the new Apple iPhones will be the most important of its products since the iPhone 6 in 2014. Wedbush analyst wrote:
“With our estimation that 350 million of 950 million iPhones worldwide are currently in the window of an upgrade opportunity, we believe this will translate into an unprecedented upgrade cycle for Cook & Co.”
Wedbush added that the new 5G advancement could drive company’s shares further.
Moreover, Morgan Stanley believes that they have to increase Apple’s earnings estimate comparing it to the Wall Street consensus which is too low. The estimated price of iPhone 12 Pro Max would be as much as $1,399 increasing iPhone’s average selling price.
Morgan Stanley has increased its ASP forecast of Apple’s FY21 iPhone to $772 compared to the prior FY21 iPhone ASP forecast of $754.