Apple (AAPL) reportedly has increased its production target for new iPhones due out this fall. The news boosted Apple stock and semiconductor stocks exposed to the consumer electronics giant.
Bloomberg reported late Tuesday that Apple has asked its suppliers to build as many as 90 million next-generation iPhones this year. That’s a sharp increase from the roughly 75 million units it has ordered for new iPhones in recent years.
Analysts expect Apple to announce its 15th-generation iPhone lineup, likely called the iPhone 13 series, in September. The next iPhones will be Apple’s second with 5G wireless capability, a key enticement to spur users to upgrade.
The iPhone 13 is rumored to feature faster processors, improved cameras and better battery life. Wall Street expects the new iPhones to be a modest upgrade from the current iPhone 12 series.
Apple Stock Extends Breakout
In morning trading on the stock market today, Apple stock rose 1.8%, near 148.25.
Earlier Wednesday, JPMorgan added Apple stock to its focus list, nudging up its price target to 175 from 170. The firm reiterated its overweight, or buy, rating on Apple stock.
In a note to clients, JPMorgan analyst Samik Chatterjee said Apple is seeing continued momentum for its iPhone 12 handsets, especially in China. He noted that investor expectations for the iPhone 13 “remain low.”
IPhone Semiconductor Stocks Advance
Broadcom stock advanced 0.8%, near 487.75, in morning trading. Earlier in the week, Broadcom stock rose on a news report that the company was interested in buying software firm SAS Institute. But the Wall Street Journal reported late Tuesday that those talks ended without a deal.
Cirrus Logic stock increased 1.4%, near 85.10. Qorvo stock climbed 1.2%, near 195.10. Skyworks rose 2.5%, near 194.25. Chip foundry Taiwan Semi added 0.7%, near 124.80.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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