What you need to know
- Apple's shares are up by as much as 4% in early trading following reports it will increase iPhone production by 30% next year.
Apple's shares have climbed by as much as 4% in early trading, following reports Apple will increase iPhone production by 30% next year.
As noted by Business Insider:
Apple gained as much as 4.3% on Tuesday after Nikkei Asia reported the company will ramp up iPhone production next year. The tech giant aims to produce 96 million iPhones in the first half of 2021, according to the report. The sum reflects a 30% increase from the year-ago period, signaling demand for its 5G-capable iPhone 12 lineup was strong despite the pandemic and its economic fallout.
As the report notes, that means that Apple added around $88 billion to its market value in about 20 minutes this morning. The price has leveled out a little, but are still up at around 2.94%, or $125.39, their highest level since mid-September.
As various reports note, this morning's jump is likely spurred by reports Apple will increase its iPhone production by 30% in the first half of 2021 to keep up with demand. From that report:
A new report says that a surge in demand for Apple's iPhone 12 will push the company to make 96 million iPhones in the first half of 2021, a 30% increase year-on-year.
From Nikkei Asian Review:
Apple plans to produce up to 96 million iPhones for the first half of 2021, a nearly 30% year-on-year increase, after demand for its first-ever 5G handsets surged amid the pandemic, Nikkei Asia learned
The report says that demand for the iPhone 12 Pro and Pro Max, in particular, is "quite bright". iPhone 12 looks set to break two years of declining iPhone shipments next year.