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Hedge Fund betting on increased iPhone 11 demand

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).

Stephen Warwick
Stephen Warwick

Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.

Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple.