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30% Increase In iPhone Production Planned For First Half Of 2021 By Apple, Says Nikkei Report

30% Increase In iPhone Production Planned For First Half Of 2021 By Apple, Says Nikkei Report
According to a report published in Nikkei on Tuesday, manufacturing of up to 96 million iPhones for the first half of 2021 has been planned by Apple Inc which will be an almost 30 per cent year on year increase in production. 
The report in Nikkei Asia cited information from multiple sources familiar with the matter saying that the Cupertino-based tech giant has directed its major suppliers to make between 95 million to 96 million iPhones which will include models for its latest iPhone 12 range and the older iPhone 11 and iPhone SE. However shortage of crucial parts for making smartphones could be an issue for Apple achieving the target.
The report claimed that apparently the plan of Apple is to build up to 230 million iPhones in 2021, including both old and new models for the full year according to the forecast shared by it with its suppliers. Compared to 2019, that would be a 20 per cent rise in production. However sources said that the company will review and revise the target on a regular basis to address any changes in demand for iPhones.
"The planned production for the next quarter and the following quarter have been decided and the outlook is quite bright," an executive at a key Apple supplier reportedly told Nikkei. "The iPhone 12 Pro, and iPhone 12 Pro Max are especially stronger than we estimated, while the demand for iPhone 12 is in line with the forecast, but iPhone 12 mini is a bit sluggish," the source added.
In 2018 and 2019 were two straight years when shipments for iPhones saw constant declines. According to data from research company IDC, the shipment of iPhones of the company was at 116 million in the first nine months of this year which was 1 per cent less than the figure in the same period a year ago.
The iPhone 12 range majorly accounted for the improvement. According to analysts, the iPhone 12 is being viewed as Apple's response to the launch of the 5G enabled smartphone ranges from Samsung Electronics and Huawei Technologies. The iPhone 12 have experienced strong demand since it was launched earlier in this quarter.  The tentative production forecast of iPhones by Apple for 2021 is almost the same as the record shipment of 231.5 million iPhones in 2015.
The Nikkei report also claimed that an aggressive production schedule is also being prepared by Apple for 2021, particularly for its high-end computers which will include the MacBook Pro and iMac Pro. Self-designed CPUs that have been built by Apple using technology from British chip designer Arm is now replacing Intel central processors in its computer lineups.
In late 2020, three MacBook models powered by its M1 central processor have already been introduced by Apple. The iPhone maker also said that the process of a complete transition to CPUs designed in-house will take about two years. Reports also said that work on a new Apple TV, a home entertainment device for video-on-demand services, is also underway at Apple and the company plans to launch the new device sometime next year.

Christopher J. Mitchell

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