14 DAY TRIAL // Apple is one of the companies that are trying to make the most out of Huawei’s legal trouble in the United States, so the Cupertino-based giant has recently increased iPhone production to ready more devices for international markets.
This is what Cowen analyst claim in a note sent to investors, as Apple has reportedly boosted the output for the quarter ending in June from 39 million to 40 million units.
The reason is as simple as it could be, the analyst explains. Apple expects some of the potential Huawei buyers to purchase iPhones, mostly as the future of the Chinese company in the United States and other large markets is currently uncertain.
Huawei was banned by the US government from working with American companies, therefore it’s no longer allowed to use their software and hardware for the development of new devices. This means the Chinese firm can’t install Android on its new smartphones, and Apple expects the delays that Huawei’s models could experience to represent an opportunity to sell more devices.
iPhone 5G coming next year
The analysts believe that the latest-generation models account for 75% of the entire iPhone output, while the remaining 25% is represented by the iPhone 7 and iPhone 8.
Furthermore, Cowen warns that Apple is still on thin ice due to the potential US tariffs that could hit the iPhone.
The analysts also reiterate some rumors that have been swirling around the web lately, claiming that the 2019 iPhone lineup will also include an LCD model. Beginning with 2020, the entire iPhone lineup is expected to use OLED. Cowen says the new devices will all feature 4 GB RAM, so the iPhone XR successor will receive an upgrade in this regard as well.
And last but not least, the analyst note indicates that a 5G iPhone is expected next year as part of the collaboration between Apple and Qualcomm.