The fallout from COVID-19, along with the general market selloff, has hammered Apple’s (AAPL) stocks in recent weeks, especially because of its exposure to China, where the new coronavirus originated. But according to Wedbush analyst Dan Ives, those lower share prices could make Apple even more attractive to investors.
“Apple, at these prices, it’s a golden opportunity to own it if you have the 12, 18-month time horizon,” he told Yahoo Finance’s The First Trade on Tuesday.
Ives’ prediction comes amid a series of blows to Apple following the outbreak. The company first had to deal with shuttered manufacturing facilities in China, then the complete closure of its retail stores in the country.
As a result, the company issued a Feb. 17 letter to shareholders, announcing it would miss its revenue guidance for Q2 2020. What’s more, the company was so uncertain of the impact of the virus, it didn’t even provide updated guidance for quarter.
The tech giant is already starting to feel the pain. Apple sold just 500,000 iPhones in China in February — down from 1.27 million last year, according to Chinese government data cited by Ives.
According to Ives, while Apple will certainly take a hit in the immediate future, the coming months should provide a quick turnaround for the tech giant.
That’s because the next version of the iPhone, presumably called the iPhone 12, is expected to make its debut in September. That device is said to be the first 5G-capable iPhone, and, according to Ives, could set off an upgrade super cycle during which millions of consumers will purchase the new phones.
Ives predicts the company could sell between 215 million and 220 million iPhones in 2021. There’s even the possibility Apple could eclipse the previous record of 231 million iPhones sold in a single year set back in 2015.
“If I look at Apple it comes down to, look past the coming weeks. 5G super cycle, 350 million of 925 million in the install base in upgrade opportunity. That’s not changing,” Ives said.
Even if Apple sees a shortage of iPhone 11 devices through the remainder of the year due to manufacturing shutdowns in February, it’s unlikely consumers will ditch the brand for competing Android devices en mass.
Apple’s own ecosystem of services and accessories, ranging from the App Store and iCloud to the Apple Watch and AirPods, all but guarantees that users will stick with the brand for the foreseeable future.
So while the next quarter may seem like a wash for the tech giant, its future could still be as clear as it’s ever been.
More from Dan:
What you need to work from home during the coronavirus outbreak
Apple could still see historic iPhone sales despite coronavirus
Samsung Galaxy S20 review: A $1,399 smartphone with a massive camera
Got a tip? Email Daniel Howley at [email protected] or [email protected], and follow him on Twitter at @DanielHowley.
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