Apple’s iPhone Production Set to Go Up 30% for Q1 2021

BusinessApple's iPhone Production Set to Go Up 30% for Q1 2021

Apple’s iPhone Production Set to Go Up 30% for Q1 2021

Tech experts have expressed their enthusiasm after Japan’s financial daily, the Nikkei shared that Apple’s iPhone production will go up 30% to around 95 to 96 million units in the first half of 2021, Reuters reports.  
Apple’s iPhone 12, 11 and SE models are the ones that are predicted to be the ones in production, however there might be a shortage of the key components – such as lithium, a resource we mentioned last week on Alvexo’s blog
Apple keeps on cultivating secrecy since it has stopped sharing exact numbers and has refused to share the predicted produced units with Reuters.
However, it is strongly believed by the press agency that the Cupertino native will try to lead the 5G industry, at a crucial time when Samsung and Huawei are also gearing up.

Apple Is Planning to Grow in 2021

Apple shares kept on rising when Apple announced last week that it will increase its iPhone production by 30% in the first half of 2021. 

Nikkei, the source where Reuters got the information from, said Apple will build up to 239 million iPhones in total in 2021, which represents a 20% increase compared with 2019.  
At the moment, iPhone sales are generating 40% of total revenue, while 2020 stay-at-home orders and the dramatic surge of remote workers worldwide has pushed the company to work on a new Apple TV, Macbook Pro and iMac Pro for early 2021.

Read on Alvexo: “Lithium Demands Surge As Tesla Expands”

China is the next market

With lower prices set in China, new markets are on the horizon too. Not only traditional clients will buy the new iPhone 12 – mainly marketed to Northern America and Europe – but also China.

While the Asian giant has been traditionally preferring Huawei. “Given the initial data points that we see on iPhone 12 and iPhone 12 Pro, I would tell you that we’re confident that we will grow this quarter in China”, shared current CEO Tim Cook.
At the moment, America “continue to be Apple’s biggest market, rising more than 4% to nearly $30.7 billion.”, reports CNet.

5G, a new opportunity

Last but not least, 5G seems to be a good opportunity for Apple to grow even more. 
Its new service, Apple One, is offering a bundle of music and fitness programs for $15 per month, which has, according to Cook, convinced new users to join.  
“”We’re off to a great start,” Apple CFO Luca Maestri said during the conference call with analysts Thursday”, reported CNet, without disclosing more. According to Reuters,the company’s shares rose 3% to $125.44 in morning trading” the day of the announcement. 
The above content is considered to be market commentary information and shall not be perceived as independent investment research or investment advice.