iPhone ‘supercycle’ will continue into 2021, analysts claim

Huge demand as iPhones hit shops

Apple’s 5G iPhone 12 ‘supercycle’ will continue well into 2021 across multiple nations, argues data and analytics company, GlobalData.

Climbing not falling

The analysis claims the momentum behind iPhone 12 sales is set to continue, particularly on an international basis.

They also claim this should be set against a context in which many tech firms are delivering profitable quarters despite the pandemic – even as enterprise purchasers become more invested in iPhone.

Anisha Bhatia, Senior Analyst at GlobalData said: “Even a smaller OEM like Lenovo recorded its first profitable quarter in Q4 2020, and China’s growing smartphone shipments are an early indicator for other regions in the world.

“As Europe and the US expand their 5G coverage in 2021, the iPhone 12 will be ready and waiting, likely with a new 5G iPhone 13 on its heels. This will continue the 5G iPhone supercycle well into 2021.”

In China, everything is an online service.

China shows the future

The key driver here is the steady rollout of 5G services. China is a bellweather for behavior here, Bhatia said:

“China is a mature 5G market and Apple’s 5G iPhone 12, launched in October 2020, set off an upgrade supercycle in the country. The iPhone 12 was a huge success in China, responsible for 57% of overall growth in revenue year-on-year (Y-O-Y).

“Around 64% of Apple’s revenues came from international sales, and once consumers get inside Apple’s ecosystem, very few leave, generating a constant cycle of revenue. Unless the world goes into yet another strict lockdown, the 5G iPhone supercycle is just beginning.”

The report continues to suggest that the smartphone industry has been spared the decimation seen in more service-oriented industries like travel and restaurants.

They also believe Apple will see gain as smartphone demand climbs back to pre-pandemic levels in 2021, pointing out that OEMs initially affected by the pandemic have steadied their smartphone revenues and supply chains.

And in the background, of course, sits the fact that Apple is doing an increasingly good job converting many of its millions of iPhone users into subscribers to its services, themselves set for improvement later this year as Apple TV+ roll out hits a new stage.

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