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Apple shares rise on news of 30% rise in iPhone production

17 December 2020
1735
2 min.
4
Apple shares rise on news of 30% rise in iPhone production

The company's shares have risen

Apple wants to increase its production in the 1st half of 2021 by 30% compared to the same period in 2020, Nikkei Asia was told. Production growth for Mac computers, including the MacBook Pro and iMac Pro, could also be higher.

Apple (AAPL) shares rose 5 per cent to a three-month high on Tuesday as investors received upbeat news of the company's plans to boost production of its iPhone and Mac.

The authoritative Nikkei Asia, citing anonymous sources, said on Tuesday that Apple has instructed its suppliers to produce around 230 million iPhones next year, a 30% increase on the pre-pandemic 2019 pace, with around 96 million planned for the first half of the year. These production plans include the new iPhone 12 c 5G as well as older models.

Next year will see a tighter production and delivery schedule in Apple's high-performance PC segment, including the MacBook Pro and iMac Pro.

Apple's largest supplier Foxconn Technology Group said last month that its sales in 2021 would grow by about 10 per cent on what it sees as strong demand for consumer electronics in general and the iPhone 12 in particular. Apple typically accounts for about half of Taiwan's Foxconn's annual revenue.

At the same time, analysts warn that Apple's production plans are subject to change, with adjustments relative to current demand, and could be hampered by severe problems with spare parts shortages.

For example, it's not just Apple that plans to ramp up supply Chinese smartphone maker Xiaomi intends to increase production in 2021 to 240 million, which could exacerbate the industry's parts shortage. Like its peers, Xiaomi is trying to expand overseas as Huawei retreats from the US market due to US government sanctions.

Apple shares have posted a strong 74.2 per cent rise since the start of the year, outperforming the major US stock indices. The rise was largely based on expectations of the arrival of the new iPhone 12 lineup with 5G and other new products. The surge also came after Apple's stock split in early September, but since then the shares were down 9.2 per cent before the close of trading on Monday.

Companies4 in the news

Huawei
2 place
Xiaomi
3 place
Apple
4 place
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