iPhone Production Jump Raises Eyebrows After Goldman Sachs Downgrade
Apple has reportedly asked suppliers to raise its production of iPhones, despite supply chain concerns and Goldman Sachs’ downgrade of company shares over the coronavirus economic slump.
According to the Nikkei Asian Review, Apple has asked suppliers to prepare for a 4% increase in annual iPhone production versus the same time last year.
Last week, shares in Apple slumped 1.4% at closing after Wall Street investment bank, Goldman Sachs, said they expect iPhone shipments to slump around 36% in Q3 amid the coronavirus pandemic.
The bank revealed it doesn’t expect Apple to launch next-gen iPhones until at least November (versus its usual September event), and downgraded Apple stock to ‘sell.’
According to the Nikkei Apple has set it sights on producing around 213 million iPhones in the 12 months to March 2021, despite some suppliers expecting demand to be notably lower – potentially 10% to 20% less than forecast.
Apple is reportedly also tipped to debut three to four new 5G iPhones during the period.
The surge in production is set to include its affordable new iPhone SE (A$749), launched with little fanfare last week. It follows reports Apple canned a late-March keynote amid the coronavirus, coupled with supply chain hiccups.