Apple seeks up to 20% boost in new iphone production

Apple Inc. has asked suppliers to build as many as 90 million next-generation iphones this year, a sharp increase from its 2020 iphone shipments, according to people with knowledge of the matter. The shares jumped to a record.

The Cupertino, Calif.-based tech giant has maintained a consistent level in recent years of roughly 75 million units for the initial run from a device's launch through the end of the year.

The upgraded forecast for 2021 would suggest the company anticipates its first iphone launch since the rollout of COVID-19 vaccines will unlock additional demand.

The next iphones will be Apple's second with 5G, a key enticement pushing users to upgrade. Apple's shares rose as much as 2.5 per cent Wednesday to US$149.22.

The stock is up about 20 per cent from a June low. This year's update will be more incremental than last year's iphone 12, emphasizing processor, camera and display improvements, the people said, asking not to be named as the plans are not public. Apple is planning updates to all of the current models, spanning the 5.4-inch and 6.1-inch regular versions and the 6.1-inch and 6.7-inch Pro models.

The phones, codenamed D16, D17, D63, and D64, are all expected to be announced in September, earlier than last year's October introduction partly thanks to the supply chain recovering.

Apple's camera upgrades will put the focus on more advanced video recording features such as improved optical zoom.

An upgraded system-on-chip, built around the same six cores as the current A14 chip, will also be included.