Apple Inc plans to raise iPhone manufacturing by nearly 30% to up to 96 million units in the first half of 2021, Japanese financial daily Nikkei reported on Tuesday, prompting another jump in the shares of the California-based tech giant. Citing unnamed sources, Nikkei said the company had asked suppliers to produce around 95 million to 96 million iPhones. That target would include the latest iPhone 12 as well as older iPhone 11 and SE models, but could be undermined by an industry shortage of key components, it said.
(Reuters, Dec 15)
Glen Cardoza:
- Not surprising and we’re forecasting all time highs for FY first quarter and 2021 for overall iPhone sales.
- Drivers: 5G demand, strong SE performance, attractive pricing (and promotions in key markets), expectations for iPhone 12 longevity.
- Risks include lead times (dropping significantly), PMIC shortage (Apple likely first in line at suppliers), Wistron controversy (not material).