Apple CEO Tim Cook unveils the new iPhone 12.
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Shares of Apple rose to 4% on Tuesday morning after the Japanese Nikkei press said iPhone production would increase by 30% in the first half of 2021.
Apple plans to build up to 96 million iPhones between January and June 2021, according to anonymous sources quoted by Nikkei. This includes the new iPhone 12 models compatible with 5G, the iPhone 11 and the iPhone SE.
Apple plans to produce up to 230 million iPhones by 2021, according to the Nikkei report. That’s 20 percent more than it did in 2020, Nikkei said. Apple no longer reveals how many phones it sells in its earnings reports.
According to one vendor, demand for the iPhone 12 Pro and iPhone 12 Pro is stronger than expected, but demand for the iPhone 12 mini is “slow.”
Apple did not immediately respond to CNBC’s request for comment.
Wedbush analysts Daniel Ives and Strecker Backe said in a note Tuesday that Nikkei’s article was “another bullish sign of iPhone 12 demand” and backed the so-called “supercycle thesis.” which advocates that many people with older iPhones are ready for upgrades and buy the new iPhones.
“Based on delivery times on Apple’s website, as well as our controls, we believe pre-tracked orders have tracked their iPhone 11 predecessor more than twice so far and constitute a robust start to the doors of Cupertino in this star product of supercycles “, they analyze finger.
Analysts estimate that 20% of iPhone upgrades would come from China next year and said the country is a “key ingredient in Apple’s recipe for success.”