KUALA LUMPUR: Apple Inc’s upcoming 5G flagship iPhone is generating excitement in the technology sector, says Kenanga Investment Bank Research.
The research house said on Wednesday Apple’s 5G phones were expected to be well received due to the revamp of its operating system and its support for 5G connectivity.
“With the top three iPhone models in circulation still comprising older models like the iPhone 7 (2016), iPhone 6s (2015) and iPhone 8 (2017), we believe that the replacement cycle is long due and the 2020 iPhone model will likely be the go-to choice for a future-proof upgrade,” it added.
A potential beneficiary of the roll-out of 5G smartphones is the radio frequency (RF) sector as RF filters will be needed to maintain a good signal-to-noise ratio.
“With the peak transfer rate estimated to jump from 150Mbps (4G) to more than 1Gbps (5G), the need for antenna will also increase from 2×2 MIMO (multiple input, multiple output) to 4×4 MIMO.
“To facilitate such speeds, the amount of frequency band support in each handset will likely doubled from the current support of 15 bands,” it said.
Meanwhile, macro developments signaled a positive trend ahead in the technology sector as outsourced semiconductor assembly and test (OSAT) market leader ASE Technology Holdings’ monthly revenue stayed resilient despite the Covid-19 outbreak.
Kenanga Research said ASE’s monthly revenue grew 18.9% to 28.1% year-on-year (y-o-y) for each month from March to May 2020, which signals a steady demand for chip packaging.
It said a similar trend was found in the front-end semiconductor space where global wafer fabrication leader TSMC recorded a monthly revenue growth of 16.6% to 42.4% y-o-y from March to May 2020.