Apple Ramps Up iPhone Production In Anticipation of First Post-COVID Rollout

China's consumer inflation rose 1.1 percent in June, Shanghai - 09 Jul 2021

Apple is set to boost its iPhone production by 20% in anticipation of a massive wave of upgrades.

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According to Bloomberg, the company has maintained a consistent level in recent years of approximately 75 million units for the initial run from a device’s launch through the end of the year, and has recently asked suppliers to build as many as 90 million next-generation iPhones this year.

“The upgraded forecast for 2021 would suggest the company anticipates its first iPhone launch since the rollout of COVID-19 vaccines will unlock additional demand. The next iPhones will be Apple’s second with 5G, a key enticement pushing users to upgrade,” according to Bloomberg.

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Another factor in the ramping up is to take advantage of Huawei Technologies Co.’s sanction-stricken smartphone business, Bloomberg adds.

The Chinese company was put on a blacklist known as the Entity List in 2019 which restricted its access to some American technology “on the basis of information that provided a reasonable basis to conclude that Huawei is engaged in activities that are contrary to U.S. national security or foreign policy interests” and its non-U.S. affiliates pose a significant risk of involvement in activities contrary to the national security of the United States, according to a statement from the Department of Commerce.

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In addition, last year, Washington moved to cut Huawei off from key semiconductor supplies, Bloomberg reports.

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As of this morning, Apple’s stock was up 2.21%.

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Last updated: July 14, 2021


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