Apple is set to boost its iPhone production by 20% in anticipation of a massive wave of upgrades.
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.
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.
In addition, last year, Washington moved to cut Huawei off from key semiconductor supplies, Bloomberg reports.
As of this morning, Apple’s stock was up 2.21%.
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Last updated: July 14, 2021