Apple CEO Tim Cook unveils the new iPhone 12.
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Apple shares rose a whopping 4% Tuesday morning after Japanese news outlet Nikkei said iPhone production will increase 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 cited by Nikkei. That includes the new 5G compatible iPhone 12 models, the iPhone 11 and iPhone SE.
According to Nikkei’s report, Apple now aims to produce up to 230 million iPhones by 2021. That’s 20% more than in 2020, Nikkei said. Apple no longer discloses how many phones it sells in its earnings reports.
According to the report, demand for the iPhone 12 Pro and iPhone 12 Pro is higher than expected, according to a supplier, 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 on Tuesday that the Nikkei article was “another bullish sign of the demand for iPhone 12” and supported the so-called “supercycle thesis,” which claims many people with older iPhones are ready. are for upgrades and buy the new iPhones.
“Based on lead times on the Apple website and our checks, we think pre-orders have tracked more than 2x its predecessor iPhone 11 so far and it’s a robust start from the gates for Cupertino with this flagship supercycle product “said the analysts. said.
The analysts estimate that 20% of iPhone upgrades will come from China in the coming year and said the country is a “key ingredient in Apple’s recipe for success.”