Apple wants to boost iPhone production in the near future. The company is asking suppliers to ramp up production of its next-generation iPhones by as much as 20%. The stark increase from its 2020 production numbers comes despite last year being what the tech giant considered to be a “super cycle”. New 5G models directed a “super cycle” that offered customers access to the improved, faster wireless networks offered by carriers.
The company maintained a production level of about 75 million devices from the product’s launch to the end of the year. At the moment, the tech giant is reportedly seeking as many as 90 million of its new iPhones. The actual number of iPhones produced could be a few million units shy of that target.
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People are willing to pay hundreds of dollars for the latest iPhones, and 5G technology makes them even more lucrative. The new technology will continue to drive upgrades as carriers expand their footprint of the new faster networks around the world. There are more reasons for regular clients, as opposed to just early adopters, to buy an iPhone that offers 5G.
Credit Suisse expects iPhone sales of 234 million units in 2021 and the number will increase to 237 million units in 2022. The bank expects Apple to sell 249 million iPhones in 2023. The Cupertino-based company stopped reporting iPhone unit sales.
But Apple reported $47.94 billion in revenue in its fiscal Q2 earnings, up 65.5 year-on-year. The company from California reported double-digit growth in every single one of its product categories. Its Mac, as well as iPad sales, rose 70.1% and nearly 79% on an annual basis. The tech giant made the decision to increase its dividend by 7% to $0.22 per share. The iPhone maker also authorized $90 billion in share buybacks, which is significantly higher than last year’s $50 billion.
The next-generation iPhones will likely offer evolutionary upgrades over the previous models. New iPhones will likely offer improved displays, cameras as well as processors. The long-term changes to the smartphone, like an eventual foldable design and a larger screen on a more affordable iPhone model, will help to boost iPhone sales