Apple Inc shares have soared 80% thus far this year, and heading into 2021, investors may have the following 10 things as their Christmas wish list for the tech giant, according to Wedbush analyst Daniel Ives.
- iPhone 12becoming the ultimate supercycle, resulting in sales of over 240 million units in 2021.
- Services business hitting an annual revenue run-rate of $65 billion in 2021 and remaining key to Apple's success and monetization story for years to come.
- Acquiring a major studio to bolster its content efforts around Apple TV+ and its streaming ambitions; Sony Pictures,Lions Gate Entertainment Corp. Class A(NYSE:LGF-A) and A24 could be potential targets.
- LiDAR tech in all 2021 iPhones, with double the current storage capacity.
- An EV strategic partnership that lays the groundwork for foraying independently into the lucrative EV market.
- Unveiling of Apple Glasses, its first augmented reality eyewear, at WWDC 2021.
- Settling of litigation withEpic Games, with Fortnite returning to the App Store.
- Contained Beltway and EU scrutiny pressure with more fines but no major business model changes; Investors are keen to have App Store maintain the 30% fee – a key to the Services business.
- Ratcheting down of tensions between the U.S. and China, as Apple has a massive China footprint, from both a supply and demand perspective.
- More success with Apple's in-house M1 chips across its hardware ecosystem and further transitioning away fromIntel CorporationINTCchips to its own.
Ives rates Apple shares at Outperform with a $160 price target. The stock closed Wednesday at $130.96 per share.
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