Apple Inc. (AAPL) – Get the report Shares rose on Tuesday following a report that technology giant plans a significant increase in iPhone manufacturing to meet the projected rise in 2021 demand.
The Japanese business newspaper Nikkei said that Apple has instructed suppliers to produce about 230 million iPhone phones next year, 30% more than the pre-pandemic pace of 2019, with about 96 million planned for the first half of the year.
Foxconn Technology Group (FXCNY) , the world’s largest electronics maker and Apple’s largest supplier, said last month that 2021 sales will grow by about 10% amid what it considers strong demand for consumer electronics in general and the iPhone 12 more specifically. Apple typically accounts for about half of Foxconn’s annual revenue, based in Taiwan.
Shares of Apple were up 4% earlier in trading on Tuesday to change hands at $ 126.57 each, a move that would extend the stock’s six-month gain by about 47%.
Last week, Wedbush analyst Dan Ives, Apple’s longtime advocate, raised his group’s target price by $ 10 a share to $ 160 a share, the highest on Wall Street. with a new bull case level of $ 200. and a higher rating than what represents a “clear rise” in iPhone demand in both the United States and China.
Ives said sales of the iPhone 12, launched in October, could approach 80 to 85 million units next year, well ahead of previous forecasts of between 65 and 70 million, based in supply chain observations and demand improvement.
He also noted that between 350 and 950 million older iPhones are within the window of an upgrade, which he said could translate into an “unprecedented upgrade cycle” for the larger tech company. Of the world.