TAIPEI -- Apple plans to produce up to 96 million iPhones for the first half of 2021, a nearly 30% year-on-year increase, after demand for its first-ever 5G handsets surged amid the pandemic, Nikkei Asia learned.
Apple logged two consecutive years of smartphone shipment declines in 2018 and 2019. In the first nine months of this year, its shipments stood at around 116 million iPhones, down just 1% on the year, according to data from research company IDC. Apple's robust iPhone orders come as the smartphone industry faces two upheavals: a serious component shortage and fierce competition for Huawei's market share.-- especially semiconductors and displays, which need several months to manufacture -- in anticipation of a post-coronavirus boom in consumer demand.
During the pandemic, Apple tried to stockpile as many processor chips as possible to avoid supply chain disruptions. Several market watchers, including CLSA and Jefferies, suggested Apple had cut some orders for its A14 processor chips for the January-March period, though industry executives told Nikkei this more likely reflects a"seasonal adjustment" and that overall demand for the first half of 2021 is still healthy.
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