Munster (smartphone analyst) said “The first year of the 5G iPhone launch will disappoint investors. In the end, this is a huge opportunity for Apple. It will play a huge role in 5G, but it will take some time to expand network coverage.” He believes that this happens because of the blame on operators.
5G is the next-generation mobile network that promises faster data speeds and also lower latency. Not only that, other features will be available to support emerging technologies such as autonomous vehicles. 5G coverage in the United States is not extensive yet. However, the expectations for improved coverage in 2020 are high. Verizon CEO Hans Vestberg said he expects that half of the United States will be covered by 5G by 2020.
Some smartphone makers such as Samsung have released 5G-enabled phones. Apple is not expected to release its first 5G iPhone until next year, though.
What analysts predict on 5G iPhone sales
According to the analysts’ predictions, users will continue to use older phones for longer. That’s why the 5G iPhones will reignite the downward trend in smartphone sales in recent years. However, a report shows that the technology giant may ship more than 80 million units. On the other hand, according to a recent Piper Jaffray survey, current iPhone users seem to be interested in 5G models. Of the 1,050 iPhone users currently participating in the survey, 23% said they would upgrade to a $ 1,200 5G iPhone, up from 18% a few months ago.
But Munster doubts that operators will be able to achieve the coverage they promise. That will become a reason for sales to dampen. He also said: “The disappointing sales will mainly depend on the operators, who have already discussed 75% coverage by the end of next year. I think at best it is nothing but optimism.”
Also read: Apple Will Increase Battery Capacity Of 5G iPhone
Apple shares have risen about 80% this year. Affected by related news, the stock hit a 52-week high of $ 246.25 in Friday trading. Munster said that even if he is not optimistic about the sales prospects of 5G iPhones, he believes that Apple’s stock price will continue to rise in the new year. “I don’t think it’s going to be one of the best performing tech stocks, even if it’s not the only technology stock that will perform best next year.” Munster also predicted that Apple’s stock price may reach between $350 and $400.