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People walk past an Apple Store on July 13, 2021 in New York City.
Angela Weiss | AFP | Getty Images
Apple is asking suppliers to increase production of the next generation iPhone by 20%, according to Bloomberg. The increase in production numbers for 2020 comes after last year was what the phone maker saw as a “super cycle,” driven by new 5G models that gave consumers access to improved wireless networks and faster offered by operators.
Apple stock is up nearly 2% in pre-market on Wednesday.
Citing people familiar with the matter, Bloomberg reported that Apple had maintained a production level of around 75 million devices from the product launch until the end of the year. Today, the company is said to be studying up to 90 million new iPhones. According to the report, the actual number produced could be several million units below target.
An Apple spokesperson was not immediately available to comment on the report.
Meanwhile, in a note to investors on Wednesday, analysts at Credit Suisse said 5G will continue to drive upgrades as operators expand their footprint on new, faster networks around the world, and that There were more reasons for regular consumers, as opposed to early adopters, to buy the iPhone with 5G.
Credit Suisse said it expects iPhone sales of 234 million units this year, 237 million units in 2022 and 249 million units in 2023. Apple has stopped reporting iPhone sales. ‘$ 47.94 billion in iPhone revenue in the second fiscal quarter results, up 65.5% year-over-year.
“We saw good momentum in the iPhone 12 cycle with a richer mix and unit growth on a lower basis,” Credit Suisse analysts said in the note. “We remain optimistic about 5G as a catalyst for iPhone upgrades over time, but we believe the momentum should slow down from there as attention shifts from early adopters to early adopters. first users. Professional models to incorporate penetration into over 1 billion Apple iPhone users as 5G coverage and use cases mature.
Analysts said this year’s new iPhones will likely offer scalable upgrades over the 2020 model, such as improved displays, cameras, and processors, but long-term changes to the iPhone such as ‘foldable design and larger screen over 5G, are more affordable. The iPhone will help the SE model continue to generate new iPhone purchases.
Read Bloomberg’s full report here.
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