Apple boosting iPhone production by as much as 20% this year: report

A customer holds an Apple iPhone 11 outside a store in San Francisco in October 2020.

Bloomberg News

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Apple Inc. is seeking to sharply ramp up production of iPhones this year, anticipating heavy demand for its upgrade cycle, Bloomberg News reported Tuesday night.

Apple AAPL, +0.79% has asked its suppliers to build as many as 90 million iPhones in 2021, Bloomberg reported, about a 20% boost from the roughly 75 million units produced in recent years.

While the technology improvements in this year’s new iPhone — which is expected to be unveiled in September — are expected to be incremental, Apple is counting on 5G and the more open post-vaccine business environment to drive sales, Bloomberg said.

Another source told Bloomberg that the increase is also an attempt to capitalize on sanctions against Chinese smartphone maker Huawei Technologies Co., which have hurt its global sales, on top of supply-chain shortages plaguing the company.

Apple shares closed Tuesday at a record high, $145.48. The stock is up 10% year to date, and up 50% over the past 12 months.

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