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Sources tell Nikkei Asian Review that Apple (NASDAQ:AAPL) wants to produce 213M iPhones in the 12 months ending next March, up 4% Y/Y.
Production will be split between the newly announced SE and the fall’s 5G lineup.
Some suppliers expect lower demand for the devices due to the coronavirus pandemic.
An unnamed components executive says Apple’s production goal is “pretty bullish,” and actual production could come in 10-20% lower.
Apple is expected to produce 200M iPhones in 2020, about 10% lower than the estimate before the outbreak.
Jefferies analyst Brent Thill raises Amazon’s (NASDAQ:AMZN) price target from $2,300 to the Street-high $2,800, citing the “attractive growth- adjusted valuation and upside to forward profit estimates.”
The analyst sees the coronavirus-related demand surge creating long-term operating income upside at high-margin businesses.
Thill writes that a sum-of-the-parts analysis shows a 70% upside over three years, and the analyst sees a path to AMZN trading at $4,000.
Jefferies maintains Amazon as its top large-cap pick.
Upcoming catalyst: Amazon will report earnings on April 30.
Based on shipping times, noted Apple (AAPL -3.0%) analyst Ming-Chi Kuo thinks the newest iPhone SE model is selling better than expected as customers turn to lower-cost devices.
Kuo isn’t as optimistic for iPhones in general, expecting June quarter shipments to fall 20-25% Y/Y as the coronavirus pandemic softens demand.
The analyst cuts his Q2 iPhone shipment estimate by 30% to 35-37M but notes there “may be further downside risk.”
Upcoming catalyst: Apple reports Q2 results on April 30.
Related: Earlier today, Nomura estimated that Apple was running four to six weeks behind on its iPhone 12 schedule. NAR sources said the tech giant was upping production orders despite demand questions.
Citing recent checks, Nomura continues to believe Apple’s (NASDAQ:AAPL) iPhone 12 “is running four to six weeks behind plan.”
Jeffrey Kvaal thinks Apple has cut its Q3 iPhone 11 SE orders from around 46M to near Nomura’s 37M estimate.
The analyst says the move modestly reduces Apple’s CY20 build plans and provides “wiggle room” should the 5G models run behind schedule.
Nomura maintains a Neutral rating and $240 price target on Apple.
Related: Earlier today, NAR sources said Apple wanted to boost its iPhone production rate through next March by 4%, split evenly between the SE and 5G models.
In other AAPL news, the tech giant announces that its Services are now available in 20 more countries. The offerings include the App Store, Apple Arcade, and iCloud.
Apple Music adds 52 additional countries.
Getting out ahead of Intel’s (INTC -1.6%) Core i3 lineup, AMD (AMD -0.1%) announces the quad-core, eight-thread Ryzen 3 3300X and 3100 processors.
Built with 7nm process tech and Zen 2 architecture, the $99 3100 has a 3.8 GHz base frequency and 3.9 GHz boost. The $120 3300X has 3.8 GHz and 4.3 GHz, respectively.
AMD also announces the B550 motherboards, which support the PCIe 4.0 interface on the new Ryzen models and will come from OEMs like Asus and MSI.
Availability: The Ryzen processors will start shipping next month, and the B550 will follow on June 16.
