Apple may cut iPhone 11 Pro production due to market shift to 5G
There has been a myriad of predictions surrounding the 2020 iPhone family (and even some about 2021’s iPhone), but how is the current iPhone 11 doing? According to analyst Jun Zhang with Rosenblatt Securities, not too well.
In a recent investor note, Zhang stated that Apple was looking to cut production of the iPhone 11 Pro and iPhone 11 Pro Max by as much as 25% in both the December and March quarters. Zhang also predicts that production across the iPhone 11 family will drop by as much as 60% in March 2020 compared to iPhone production in March 2019.
However, Zhang appears to be in the minority with this opinion. Other analysts have predicted that the iPhone 11 family is doing extremely well and that Apple has no plans to cut production. (It should be noted that Zhang’s firm, Rosenblatt Securities, currently has Apple’s stock (AAPL) listed as “Sell” with a target price of US $150, or 44% below its current price.)
Zhang justifies his stance with his belief that markets are shifting their focus to 5G phones. 5G is certainly a hot topic, and Qualcomm recently announced that it was working furiously with Apple to produce a 5G-compatible iPhone. However, considering the scarcity of 5G in the United States, which is still Apple’s largest market, it’s unlikely that Apple is sweating over the lack of a 5G iPhone, at least for this year.
Rosenblatt Securities investor note