Based on an analyst, Apple’s launching of the 5G supported iPhones and the rising trend of work from home and online education, can steer the company’s shares higher.
The 5G connectivity is the fifth generation of uninterrupted or high-speed internet for mobile phones. It gives more speedy data and more bandwidth that handles the increasing levels of network traffic.
Not long ago, Apple set off as the public’s first traded Unites States company to achieve a $2 trillion market capitalization. It happened two years after their $1 trillion breakthroughs. Last Monday, the company’s shares increased by 1.2%.
“The remarkable thing, in my opinion, is that Apple achieved the $2 trillion market cap without selling a single 5G iPhone.”Tom Forte, D.A. Davidson’s senior research analyst and managing director
He continued his statement, “To the extent that the 5G iPhone results in multiple years of positive growth for smartphones, Apple shares can continue to do well.”
Presently, Apple has the label of the third-largest manufacturer of smartphones, next to Huawei and Samsung. This globally known tech company is to launch its iPhone 12 lineup comprising four models with various screen sizes and 5G support. However, it is encountering delays for its production, as reported by Nikkei Asian Review.
Currently, many people are working in their homes, and their children are taking online education for a safer environment due to the COVID-19 health crisis.
A month ago, there was an estimation that about one billion people were already doing remote work, as cited by Forte from Logitech’s computations.
From that citation, Forte mentioned that we had seen the strength in tablets and laptops, adding to an increase in iPhone sales. He believed that we would observe more vigor in tablets and laptops because consumers work and learn at home continually.
In July this year, Apple discussed its historically dominant third quarter that has a significant double-digit increase in the products and services portion. Due to the coronavirus outbreak, there was a prevalent retail closure in that quarter. However, the tech giant stated that remote work trends and virtual sales uplifted its whole operations.
Forte also added that there could be a significant risk from Apple’s subjection to China. Its June quarter iPhone sales noticed a sudden jump in the middle of an existing strain between Washington and Beijing.