What you need to know
- Hedge Fund Timefolio is buying up stock in Apple's suppliers.
- Shares are expected to perform well because of strong performance of iPhone 11.
- Shipment of iPhone 11, Pro and Pro Max could be as high as 73 million units.
Hedge Fund Timefolio has been buying up shares in Apple's suppliers, in the wake of revised and optimistic predictions about the iPhone 11's sales performance.
Via Bloomberg, Taiwan-based profolio manager Narci Chang said in an interview:
"Based on our supply chain data, we believe orders for iPhone 11 Pro for suppliers will be revised up...I think that is going to be very encouraging for entire supply chain."
Supplier data appears to show that the pre-order performance of the iPhone 11, Pro and Pro Max has been very strong. Bloomberg notes that Rosenblatt Securities Inc. had seen some new model production increases in September and October for the new models. Chang estimates that based on this data, the total shipments of Apple's new trio of phones could be as high as 72 or 73 million units, higher than the standard market expectation of around 70 million.
The graph below, also via Bloomberg highlights the dramatic increase in share price of notable Asian suppliers since the announcement and release of the new iPhone.
The news comes in the wake of reports that the average selling price for the iPhone could decline more sharply than expected given the sucess of Apple's cheaper iPhones, especially given the cheaper price of the iPhone 11 ($699) compared to the iPhone XR ($749).