Apple is planning to boost the iPhone production in 2021 according to a Nikkei report. The move comes at a time when it already faces shortages of several components for the iPhone 12 series.
According to the report, Apple is planning to make 96 million iPhones in H1 2021. That’s a 30% YoY increase which is reportedly due to the demand for its 5G devices. Apple brought the 5G connectivity to iPhones with the iPhone 12 series. Since then, there has been a good demand for the devices in Europe, China, and other Asian markets. In fact, it’s initial demand forecasted a two-week recovery period due to shortages of supplies.
Anyway, the report says Apple has directed suppliers to get ready for the target which also includes iPhone 11, and iPhone SE. Further, Apple is also planning to take it deep with a total of 230 million iPhone shipments next year. Recently, Apple got pushed to 4th place by Xiaomi in Global Smartphone Shipments.
Precisely, the company has so far shipped 116 million iPhones in 2020. Out of this, the majority of shipment is from the 5G devices according to the report. Either way, it has crawled back up with just a 1% YoY dip in shipments so far. And with the global smartphone market’s recovery far away in 2022, Apple has no choice but to crank it up a notch and do something.
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However, Apple has a main concern to address in order to achieve the next year’s target. Although the report says Apple has enough stocks of processor, it has been increasingly facing shortages of components. A recent report on IC shortages for iPhone 12 Pro which could last till Q2 2021 gives more bad news.
That’s not all as the report says in spite of reallocated parts of the iPad to the iPhone 12 range, Apple is chasing for other components to meet demand. Experts also say that even though a positive atmosphere lies ahead in 2021, Apple won’t benefit from Huawei’s absence, unlike other companies. Either way, Apple’s target for 2021 is a 20% YoY increase from 2019.
Going into 2021, it already has healthy demands for iPhone 12Pro, 12 Pro Max but not-so-great want for iPhone 12 and 12 mini. Nevertheless, the iPhone 12s will allow Apple to take a chunk of total OLED shipments but experts feel that the next iPhones won’t have any excitement now that 5G is already here.
