Apple May Record Its First Quarterly $100 Billion Revenue Driven by iPhone 12 Success

Quarterly Earnings Announcement on the 27th
Revenue Expected to Reach $100 Billion
Target Prices Rapidly Revised Upward
"iPhone 12, One of the Most Successful Products Recently" Praised

On the 30th, when Apple's first 5G smartphone, the iPhone 12 series, was officially released in Korea, customers were examining the products at the Apple Store on Garosugil, Gangnam-gu, Seoul. Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Minyoung Cha] Market attention is focused on Apple ahead of its quarterly earnings announcement on the 27th (local time). This is because Apple's first 5G smartphone, the 'iPhone 12' series, has settled in the market, driving strong demand.

According to securities firms and related industries on the 25th, Apple's Q4 of last year (October to December 2020, Apple's fiscal Q1) sales are expected to surpass $100 billion (approximately ?110.5 trillion) for the first time on a quarterly basis. Global investment bank (IB) Morgan Stanley projected $108.2 billion, while Mones Crespi Hart forecasted $105.2 billion. The previous record was $91.8 billion in the same quarter last year.

This is expected due to strong sales of the iPhone 12 along with increased sales of Macs, iPads, and others. As the new iPhone 12 series showed stronger-than-expected demand, some firms raised their target prices ahead of the earnings season. Credit Suisse raised its target price from $106 to $120. Market research firm Canaccord also increased its target price from $145 to $150.

Brian White, an analyst at Mones Crespi Hart, analyzed, "Despite the COVID-19 situation, many customers are working and studying from home, so MacBook and iPad sales will be strong." Matthew Cabral of Credit Suisse pointed out, "Consumer demand for the iPhone 12 Pro and iPhone 12 Pro Max is stronger than expected." T. Michael Walkley of Canaccord predicted, "Apple's Macs, iPads, and related services will continue to see double-digit growth." Katie Huberty of Morgan Stanley also praised, "The iPhone 12 is Apple's most successful product in the past five years."

However, opinions on the direction of 5G technology this year were divided between conservative and positive outlooks. The 5G supply chain is unlikely to expand rapidly worldwide, and concerns about content have increased. Analyst Matthew Cabral said, "The 5G supply chain is limited, and there is a lack of killer apps that require 5G, so we maintain a conservative stance in the short term," adding, "Nevertheless, 5G is seen as a long-term growth momentum." Conversely, analyst Michael Walkley predicted, "The 5G upgrade cycle is likely to be profitable this year."