Apple Inc AAPL plans to ramp up iPhone production by 30% on a year-on-year basis in the first half of next year, Reuters reported Monday.
What Happened: The Tim Cook-led tech giant has asked its suppliers to manufacture between 95 to 96 million iPhones, which includes iPhone 12, iPhone 11, and the SE models, Nikkei Asia reported, as per Reuters.
The preliminary full-year forecast that Apple reportedly shared with its suppliers indicates the company plans to manufacture up to 230 million iPhones in 2021 — this includes both new and old models.
Why It Matters: Compared with 2019, the number is a 20% increase but the target is subject to revision and is contingent on consumer demand, noted Reuters.
Supply chain constraints could threaten the manufacturing target, as per Nikkei Asia’s sources.
Last month it was reported that the Cupertino, California-based tech giant is already struggling with meeting holiday demand due to escalating demand for parts including semiconductors.
Last quarter, iPhone sales failed to meet analyst’s estimates and fell short by $ 1 billion.
Price Action: Apple shares closed nearly 0.5% lower at $121.78 on Monday.
Related Link: Apple Supplier's iPhone Factory Suffers $7M In Damages During Violent Worker Protests
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