apple (AAPL) – Get report shares jumped to a new record high on Wednesday after a report that the iPhone manufacturer has asked suppliers to increase production by as much as 20% this year, as it appears to meet improved customer needs.
Bloomberg reported on Wednesday that Apple wants to build 90 million next-generation iPhones this year, and the world’s largest technology company is expected to get a boost from the launch of new 5G phones later this year. Earlier this month, Apple’s main rival, Samsung Electronics, said that its June quarter result is likely to increase by 53% from last year to 1
The stock was also encouraged by an upgrade at JPMorgan, which added the stock to its ‘analyst focus list’ as Samik Chatterjee raised its price target by $ 5 to $ 175 each.
“We are adding Apple shares to the analysts’ focus list as a growth period, as data points that support our recently highlighted favorable view of the stock continue to seep in, including an upside revision of iPhone 12 estimates from Apple Supply Chain analyst William Yang, as well as continued strength in sales of Mac devices, “wrote Chatterjee.” Although the above drivers are leading to an increase in our short-term forecasts, the recent drive for better market share is also driving us to estimate higher sustainable volumes in future quarters, which makes us see a path to Apple that exceeds investor expectations over a longer time horizon instead of just the upcoming earnings printout. ”
Apple shares were up 2.1% higher in the middle of the day on Wednesday to change hands to $ 148.75 each, only shy of the record high of $ 149.45 it hit earlier in the session.
Apple will report its third-quarter earnings on July 27, with CFO Luca Maestri warning investors in late April that the group is likely to experience a “steeper-than-usual” sequential decline in revenue, in part due to supply constraints linked to the global semiconductor shortage . after the sale of a nearly $ 90 billion street blast for the three months ended March.
Apple said iPhone revenue grew 65% from last year to $ 47.94 billion, well ahead of the $ 41.7 billion forecast, thanks to what CEO Tim Cook called “strong demand for the iPhone 12 family”.
Larger China revenues, Apple said, increased 88% from last year’s pandemic to $ 17.728 billion, while total service revenues increased by 26.6% to $ 16.9 billion.