The worst is over for Apple, according to investment bank Wedbush (via AppleInsider).
 
Apple, like many other companies, had warned that the coronavirus would affect its business. And sure enough, iPhone, iPad, and Mac sales did suffer in the last quarter. However, wearables and accessories and services category remained resilient, with the latter bringing in record-breaking revenue.
 
According to Wedbush, not only will services continue to fuel growth, but hardware sales will also begin to pick up with the launch of the iPhone 12. According to the bank’s estimates, 350 million out of the current iPhone installed base of 925 million are due for an upgrade and this could work in the favor of the next cycle.
 
Wedbush also believes that the reopening of Apple Stores and a recovering supply chain are signs that things are returning to normalcy, or a new normal, if we may say so.
 
That said, the financial services firm does believe that the launch date of 5G iPhones could get pushed. It expects the smartphones to make a debut towards the end of the year, during the November or early December timeframe.
 
It’s not clear yet if the supposed delay is because of earlier supply-side disruptions or because of demand-side uncertainties.   
 
Overall, it seems like Apple has a grip over its operations. Quite recently, the company released various new devices including the low-cost iPhone SE, which, according to estimates, is doing better than expected. In fact, the company says that all of the recently released products have received a great market response, despite the current situation.
 
Store traffic in China is already beginning to pick the pace and since the country is ahead of the rest of the world in that it seems to have contained the virus, it could be a good proxy for the recovery of retail channels elsewhere.
  
Previously, investment bank Cowen had also said that it expects iPhone demand to improve in H2 2020 with the introduction of 5G iPhones.