An analyst at Raymond James thinks that Apple Inc. (NASDAQ:AAPL) is likely to outperform over the next two years given that the tech company is expected to announce a competitively-priced 5G iPhone model in its 2020 product lineup.
Most analysts had expressed their reservations as to whether Apple would successfully launch a 5G device next year given its long-running legal battle with Qualcomm Inc. (NASDAQ:QCOM), but this view has changed given that Apple will now use Qualcomm’s chips in its 2020 phones, which is a big plus for the iPhone maker.
Chris Caso, an analyst at Raymond James, upgraded Apple shares today to outperform from market perform based on the likelihood of an affordable 5G iPhone model generating massive sales for the tech major in 2020 as users upgrade their devices.
Caso explained in a research note to clients that: “With an ageing installed base, we think a reasonably priced 5G phone will be a very compelling upgrade." He also believes that most phone carriers will have installed the necessary infrastructure to support 5G phones by next year.
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