APPLE AIMS TO MAKE 30% MORE IPHONES IN FIRST HALF OF 2021

Wed 16 December 2020:

Apple Inc plans to manufacture up to 96 million iPhones in the first half of 2021, a nearly 30% year-on-year increase owing to strong demand for its 5G handsets, Nikkei reported on Tuesday.

It has asked suppliers to produce around 95 million to 96 million iPhones, including the latest iPhone 12 range as well as older iPhone 11 and SE models, but an industrywide shortage of key components could threaten the target, according to the report.

The company plans to build up to 230 million iPhones next year, a 20% rise from 2019, though the target will be regularly reviewed and revised in response to consumer demand, Nikkei reported.

Apple has been fighting for several years to become less dependent on the iPhone, which contributed to 40.8% of overall sales during the last quarter, as new markets and demand for handsets began to peak after a decade of spectacular growth.

Apple in October said a delayed launch for its 5G iPhones put off customers from buying new devices, adding that it expected single-digit iPhone revenue growth in its current quarter.

Analysts expect iPhone revenue to rise 5.8% to $59.19 billion in the first quarter, according to Refinitiv data.

The company is currently working on a new Apple TV model and preparing an aggressive 2021 production schedule for its MacBook Pro and iMac Pro, according to Nikkei’s report.