People walk past an Apple store on July 13, 2021 in New York City.
Angela Weiss | AFP | Getty Images
Apple is asking suppliers to increase production of next-generation iPhones by 20%, according to Bloomberg. The sharp increase from 2020 production figures comes despite the fact that last year was what the phone manufacturer considered to be a “super-cycle”
Apple shares rose almost 2% on Wednesday before the market.
Apple has maintained a production level of around 75 million units from the product’s launch to the end of the year, Bloomberg reported, citing people familiar with the matter. The company is now reportedly looking for as many as 90 million of its new iPhones. According to the report, the actual number produced may be a few million units cloud for the target.
An Apple spokesman was not immediately available for comment.
Meanwhile, Credit Suisse analysts said in a note to investors on Wednesday that 5G will continue to drive upgrades as operators expand their footprint of the new faster networks around the world, and there are several reasons why regular consumers, as opposed to just early adopt, to buy an 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 device sales, but reported $ 47.94 billion in iPhone revenue in its earnings in the second quarter, an increase of 65.5% year-over-year.
“We have seen good momentum in the iPhone 12 cycle with a richer mix along with unit growth from a lower base,” Credit Suisse analysts said in the note. “We’re still bullish on 5G as a catalyst for iPhone upgrades over time, but think progress is likely to slow from here, with a shift from early users switching to Pro models to regular penetration within Apple’s 1 billion iPhone user base. 5G coverage and usage. Cases are mature. “
Analysts said that this year’s new iPhones are likely to offer evolutionary upgrades over the 2020 model, such as improved screens, cameras and processors, but that long-term changes to the iPhone, such as a possible collapsible design and a larger screen on a less expensive 5G iPhone SE model to make new iPhone purchases.
Read the full Bloomberg report here.