Apple Inc. shares AAPL,
are up 3.2% in morning trading Tuesday after Nikkei Asia reported that the company plans to produce 95 million to 96 million iPhones in the first half of 2021, which would mean an increase of nearly 30% from a year earlier. The company’s smartphone production targets cover the newer iPhone 12 models and older devices such as the iPhone 11 and iPhone SE. Nikkei Asia noted that an industry-wide shortage of supply could affect Apple’s ability to meet its manufacturing goals. Overall, the company’s plans shared with suppliers suggest a production target of up to 230 million smartphones over the course of 2021, which would be a 20% increase from the 2020 totals, Nikkei Asia reported, citing multiple unnamed sources. Apple did not immediately respond to a MarketWatch request for comment. Wedbush analyst Daniel Ives wrote that the report was “another positive sign” of demand for the iPhone 12 devices Apple released this fall. “With more ordering activity starting in recent weeks for iPhone 12, our initial reads are very optimistic and give us increasing confidence in our supercycle thesis on iPhone 12,” he wrote. Apple shares are up 71% so far this year as the Dow Jones Industrial Average DJIA,
is up 4.9%.