Checks Suggest 'Material Reduction' to Apple (AAPL) Q3 5G iPhone Builds - Susquehanna
Susquehanna analyst Mehdi Hosseini notes recent checks showed a "material reduction" in Apple's (NASDAQ: AAPL) Q3 iPhone 5G builds.
"This is consistent with our views on TSM and Memory, anticipating weaker smartphone end market demand in 2H20," Hosseini commented.
The analyst highlighted:
- Recent checks suggest total iPhone builds for 2Q20 tracking to ~33-35m, slightly below our expectations of 36M and driven by weaker iPhone11 demand.
- Looking into 3Q20, checks suggest total builds for iPhone12 (the new 5G models) tracking to only 10M, well below our expectations of 25M!
- All in all, we believe the overall iPhone12 is now tracking to 50-55M, below our prior expectations of 55-60M and well below the consensus expectations of 70M.
- We don't rule out Apple introducing sub-6GHz and mmWave 5G phones, though Apple's mmWave option will be a dual-band and not really a true mmWave phone