Apple targets production of 90m iPhones this year 

Apple chief executive Tim Cook with the iPhone 12. The upgraded forecast for 2021 would suggest the company anticipates its first iPhone launch since the rollout of Covid-19 vaccines will unlock additional demand.

Apple has asked suppliers to build as many as 90m next-generation iPhones this year, a sharp increase on its 2020 iPhone shipments.

The tech giant has maintained a consistent level in recent years of roughly 75m units for the initial run from a device’s launch to the end of the year. 

The upgraded forecast for 2021 would suggest the company anticipates its first iPhone launch since the rollout of Covid-19 vaccines will unlock additional demand.

The next iPhones will be Apple’s second with 5G, a key enticement pushing users to upgrade.

This year’s update will be more incremental than was the case with last year’s iPhone 12, emphasising processor, camera, and display improvements, said sources.

Updates to all models

Apple is planning updates to all of the current models.

The phones, codenamed D16, D17, D63, and D64, are all expected to be announced in September, earlier than last year’s October introduction partly thanks to the supply chain recovering.

At least one of the new versions will have an LTPO (low-temperature polycrystalline oxide) display capable of alternating the refresh rate based on the content being shown. 

Apple has used this technology in the Apple Watch for several years, allowing the screen to be slower in certain situations, such as the Always On mode, to extend battery life.

While the design of the new Apple phones will remain largely unchanged, the company plans to reduce the size of the front-facing camera and face unlock sensor cutout, or notch, to better match its rivals. 

The company hopes to eventually remove the notch entirely in a future version of the iPhone and is likely to shrink its size further next year.

'Strong momentum'

“Apple’s building on strong momentum from the iPhone 12 release in 2020 and may continue to benefit from 5G smartphone upgrades and an overall improved smartphone market to follow that up with another strong release," said Bloomberg analyst Matthew Kanterman.

"Still, the growth expected in the initial production ramp is skewed by the fact that the iPhone 12 released later than normal in 2020, while the next iPhone is expected back to the normal late September release window.” 

While Apple has asked suppliers to build up to 90m units, the actual number could be a few million units shy of that target, one source said.

The ongoing chip shortage that has undermined operations across several global industries is not expected to affect the production of upcoming iPhones. Apple is key chipmaker Taiwan Semiconductor Manufacturing’s biggest customer and its outsize orders make the launch of a new iPhone an annual event that suppliers across Asia plan for months in advance.

• Bloomberg