iPhone News: Apple Requests 20% Production Boost For New Generation 5G Release
Apple (AAPL) has asked suppliers to boost production for its next-generation iPhones. Bloomberg News on Wednesday cited sources that the tech giant would like to build 90 million phones, which would be a 20% increase from its 2020 iPhone shipments.
The sharp production boost in iPhones comes amid an expected demand boom for its new line of products and as the economy reopens. In 2020, there was a “supercycle” of consumers upgrading to 5G models, which offers improved, faster wireless service.
“Apple’s building on strong momentum from the iPhone 12 release in 2020 and may continue to benefit from 5G smartphone upgrades and an overall improved smartphone market to follow that up with another strong release. Still, the growth expected in the initial production ramp is skewed by the fact that the iPhone 12 released later than normal in 2020, while the next iPhone is expected back to the normal late September release window,” said Matthew Kanterman, an analyst at Bloomberg.
The newest iPhone to be released will be its second 5G iPhone offered. The new features include an improved display, an emphasizing processor, camera, and display improvements, according to Bloomberg's sources.
CNBC on Wednesday cited a report from Credit Suisse analysts that broader iPhone changes can be expected, such as a foldable design, and a larger screen on a more affordable 5G iPhone SE model.
Like the auto industry and other tech sectors, the recent chip shortage has slowed many companies' operations, but experts say that Apple can expect a strong rollout of its iPhones.
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