Morgan Stanley analysts said Wednesday that they are monitoring air quality reports in Chinese cities that suggest an increase in industrial activity associated with the production of the iPhone 12.
Two new iPhone 12 models went on sale last week and two more will go on sale next month. This is a few weeks later than Apple’s traditional rhythm, which aims to release new iPhones in September, and is most likely due to disruptions caused by the delayed Kovid-19 epidemic. For better sales of the project in the coming quarters, Apple’s investors are looking at how to produce finished equipment.
For Morgan Stanley, air quality is one such clue.
“Using air quality data from a nonprofit platform that collects and publishes air quality data in China, we track nitrogen dioxide levels (control for temperature, humidity, air, etc.), which is European According to the space agency, one has written analysts, “the first-level indicator of industrial activity in four Chinese cities, where Apple’s manufacturing partners have a large manufacturing presence.”
In Zhengzhou, China, a major production site for Apple’s manufacturing partners, analysts suggest low air quality shows a ramp in production.
“As of 26 October, air quality data from Zhengzhou, also known as the ‘iPhone City’, shows that industrial production levels have recently risen nearly a month later than the historical seasonality Is, which we coincide with the ramp up in production of the iPhone 12., “Morgan Stanley analysts led by Katy Huberty wrote in a note this week.
In Shenzhen, Morgan Stanley believes industrial production rose more in early September, but fell below historical seasonal levels. In Chengdu, analysts found that industrial activity has been at a high level in recent times. In Chongqing, there has been a significant increase in industrial production in recent days after the September boom and pullout.
Apple reported its fourth fiscal quarter earnings on Thursday. However, Apple is reporting results to expire in September, so it will not include sales of the iPhone 12.