Apple Kicks Off iPhone 5G Supercycle On Tuesday: Here's What To Expect

Apple Inc. AAPL shares are higher Monday ahead of the company's October event to launch its newest iteration of iPhone, which is just a day away.

The Apple Analyst: Wedbush analyst Daniel Ives has an Outperform rating and $150 price target for Apple.

The Apple Thesis: The launch of the iPhone 12, Apple's most important product cycle since the iPhone 6 in 2014, marks the kickoff of its iPhone 5G supercycle, Ives said.

4 iPhone Models In The Offing: Four models of iPhone 12 are likely to launched. The specifications, according to the analyst, are as follows:

• 5.4-inch OLED display starting at $699
• 6.1-inch OLED display starting at $799
• 6.1-inch iPhone Pro OLED display starting at $999
• 6.7-inch OLED display iPhone Pro Max starting at $1,099

All the four models will likely have 5G, with the Pro versions expected to have LIDAR sensor technology for AR capabilities/ apps, enhanced rear camera technology, and 4x/5x optical zoom, the analyst said.

Related Link: Why iPhone 12 Will Be Another 'Defining Chapter' In Apple's Growth Story

Unprecedented Upgrade Cycle Coming Up: Apple may begin to accept pre-orders in a few weeks. The company will likely commence shipping of two models in late October and the others in the mid-November timeframe.

"Apple and its Asian suppliers anticipate stepped-up demand for the larger 6.7-inch model which is raising the overall iPhone 12 expectations heading into this "once in a decade" potential launch," Ives wrote in the note.

The analyst expects a U.S. and non-U.S. version of 5G models to be introduced, with the U.S. version boasting of mmWave technology. The technology would be a game changer, as more infrastructure, technology, and apps are built around this transformational 5G highway over the coming years, he added.

Wedbush estimates iPhone 12 shipments of 75 million+ range, with 80 million a stretch goal.

With an estimated 350 million of the 950 million iPhones worldwide currently in the window of an upgrade opportunity, an unprecedented upgrade cycle is in the offing for Apple.

"Although the soft macro and COVID backdrop will clearly dent some demand, we believe the underlying growth drivers for iPhone 12 success are unparalleled for Cupertino," said Ives.

The firm continues to hold Apple as its favorite 5G play for next year.

AAPL Price Action: Apple shares were higher by 3.3% to $120.63 at publication time.