Apple iPhone production said to rise by up to 20% – report

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People walk past an Apple retail store on July 13, 2021 in New York City.

Angela Weiss | AFP | Getty Images

Apple is asking suppliers to increase production of the next generation of iPhones by 20%, according to Bloomberg. The huge increase from production numbers for 2020 comes even though last year was what the phone maker saw as a “super cycle,” driven by new 5G models that gave consumers access to improved and faster wireless networks offered by carriers.

Apple stock rose nearly 2% in the primary market on Wednesday.

Citing people familiar with the matter, Bloomberg reported that Apple has maintained a production level of about 75 million devices since the product was launched through the end of the year. Now, the company is said to be seeking to acquire as many as 90 million of its new iPhones. According to the report, the actual number produced could be shy of a few million units from the target.

An Apple spokesperson was not immediately available to comment on the report.

Meanwhile, in a note to investors on Wednesday, Credit Suisse analysts said 5G will continue to drive upgrades as carriers expand their presence in new, faster networks around the world, and there are more reasons for regular consumers to buy, rather than just early adopters. iPhone with 5G.

Credit Suisse said it expects iPhone sales of 234 million units this year, 237 million units in 2022 and 249 million units in 2023. Apple stopped reporting iPhone unit sales, but reported $47.94 billion in iPhone revenue in its second-quarter financial earnings, Up 65.5% year on year. -during the year.

“We saw good momentum in the iPhone 12 cycle with a richer mix combined with unit growth from a lower base,” Credit Suisse analysts said in the note. “We remain optimistic about 5G as a catalyst for iPhone upgrades over time, but we believe momentum will likely slow from here as focus shifts from early adopters toward Pro models to mainstream proliferation within the iPhone user base of over 1 billion as coverage and 5G use cases mature.” .

Analysts said this year’s new iPhones will likely offer evolutionary upgrades over the 2020 model, such as improved displays, cameras and processors, but these are long-term changes to the iPhone, such as an eventual foldable design and a larger screen over the more affordable iPhone 5G. It will help the SE model keep paying for new iPhone purchases.

Read the full Bloomberg report here.

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