Air quality data from certain Chinese cities are pointing to a surge in the production of the iPhone 12, according to Morgan Stanely analysts. As CNBC reports:
“Using air quality data from a non-profit platform that collects and publishes air quality data in China, we track nitrogen dioxide levels (controlling for temperature, humidity, wind, etc.), which, according to the European Space Agency, is a first-level indicator of industrial activity, in four Chinese cities where Apple’s manufacturing partners have a large manufacturing presence,” the analysts wrote.
In specific, air quality data from the Chinese city of Zhenghous which is nicknamed “iPhone city” hints that iPhone production has surged compared to past months. Analysts are using these clues to determine how well Apple’s production for the new iPhones are doing.
“As of October 26th, air quality data from Zhengzhou, also known as ‘iPhone City,’ shows that industrial production levels have spiked higher recently, about a month later than historical seasonality, which we believe coincides with the ramp in iPhone 12 mass production,” Morgan Stanley analysts led by Katy Huberty wrote in a note this week.
In another city, Shenzhen, Morgan Stanley says that production was at a high in early September, but lowered in the weeks that followed. Apple will officially report its quarterly earnings on Thursday, October 29th however specific numbers for the new iPhones won’t be mentioned given the results will cover data up until September.