Apple to make 116 million iPhone in Q1 2020

Krish Sankar, an analyst working for Cohen & Company Inc. in a report estimated that Apple manufactured about 70 million iPhones for the holiday quarter. Of which, 74% of the number i.e 52 million units were iPhone 11 and iPhone 11 Pro models with the rest of them being iPhone XR, iPhone 8 models.

The report suggests that Apple will make 46 million iPhones (all models combined) in the first calendar quarter of 2020. The numbers reflect that Apple expects to see a 12% estimated year over year growth in terms of sales. Out of the 46 million units, a good six million units will reportedly be of the upcoming “iPhone SE 2” which is also being referred to as the “iPhone 9”.

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The original iPhone SE was launched in March of 2016 for an extremely low price tag of $399. Sankar suggests that Apple will price the upcoming iPhone SE second generation at $475 – a slight increase in price considering the various changes made in the last four years.

“Warm reception for the iPhone 11 & bullish investor sentiment on the smartphone market has led to expectations for iPhone unit Y/Y growth in CY20 especially with the SE2 (despite some cannibalization) and 5G product cycles,” Sankar wrote. “Services revenue growth is expected to remain robust with generally stable gross margins (60%+) as rising subs revenues (est. 51% of Services by FY21 vs 44% in FY19) drive multiple expansion.”


Sankar also reveals that Apple will only build around 43 million iPhone units in the second calendar quarter of 2020. On the 20th of January, Sankar increased Apple’s stock price target to $350 laying trust in the company’s services business and its upcoming range of iPhone models. Also, Apple is expected to launch its first 5G supported iPhone model this year.