Wall Street is Underestimating 5G Impact on Apple

The 5G boom is here.

And analysts believe it’s a $12 trillion opportunity.

Not only will it have an unrivaled impact on society, it’ll impact healthcare and transportation to defense, banking, everything.  The U.S. committed up to $400 million to 5G over the last three years. China will invest up to $400 billion on 5G by 2025 with 430 million users.  South Korea invested $1.5 billion in the technology. Germany is in for $100 billion.

Even President Trump tweeted, “I want 5G, and even 6G technology in the United States as soon as possible.  It is far more powerful, faster, and smarter than the current standard.”

That may be part of the reason analysts believe the Street is underestimating its impact on Apple and its iPhones.  In fact, analysts at Jefferies noted, “We think the Street underestimates the benefit Apple gets from this heading into the 5G cycle,” as quoted by CNBC.

At the moment, Wall Street believes Apple will sell 190 million 5G devices in 2021, which is 9% below the 6-year average unit volume for the iPhone, says Jefferies. However, these estimates are too conservative, estimating 208 million iPhones shipped by 2021.  “Given the advanced technology and components, 5G devices will be high-end devices (where Apple holds dominant share),” they added.

Analysts also believe most Apple customers will need an upgraded 5G device, and that the industry push behind 5G will be significant. 

If you think we live in a connected world right now, just wait…

By 2035, about $12.3 trillion worth of goods and services will be enabled by 5G networks, and the rollout will add approximately $3 trillion to the worldwide GDP.

Those are stats that just can’t be ignored.