Apple climbs on report iPhone 11 production could increase by 8 million units
- Shares of Apple traded as much as 2.3% higher on Friday morning on a report the company is planning to increase iPhone 11 production.
- The Nikkei Asian Review reported that Apple told suppliers to increase production by up to 10%, or 8 million units, amid better-than-expected demand for the iPhone 11.
- According to Wedbush analyst Daniel Ives, the Chinese market could be one of the main drivers of the increased demand.
- Watch Apple trade live on Markets Insider.
Apple's stock price climbed as much as 2.3% on Friday morning following a report the company asked suppliers to hike production of its new iPhone 11 amid better-than-expected demand.
The company has reportedly asked suppliers to increase production of the new phone by up to 10%, or 8 million units, the Nikkei Asian Review reported.
"This autumn is so far much busier than we expected," A source with direct knowledge of the situation told Nikkei. "After the increase, prepared production volume for the iPhone 11 series will be higher compared to last year."
The boost in demand comes as Apple decided to cut the price of its entry-level model for the upcoming slate of iPhones. The iPhone 11 will cost $699, compared to the $749 price tag on the iPhone XR last year.
Wedbush analyst Daniel Ives said China is likely one of the primary drivers for the surge in demand as Chinese consumers are drawn to the lower price point, dual-camera functionality, and variety of color options.
"China as a region is currently one of the main catalysts of demand for the iPhone 11 and is tracking roughly 20% ahead of plan," Ives said in a note to clients on Friday. Ives also expects Apple could produce more than 185 million iPhones in 2020 based on the recent demand trajectory.
Shares of Apple are up more than 42% year-to-date.