Apple Stock Is Rallying On A Report iPhone Demand Is Stronger Than Expected

Apple shares were higher on Tuesday following a report that the company is increasing production of its 5G iPhones amid surging demand.

Nikkei Asia reported that Apple (ticker: AAPL) plans to produce 95 million to 96 million iPhones in the first half of 2021f, a nearly 30% increase from a year earlier. The target includes the new iPhone 12 line as well as older iPhone 11 and iPhone SE models.

According to the report, Apple plans to build up to 230 million iPhones in total in 2021. The story said that, according to an executive at one key Apple supplier, demand is stronger than expected in particular for iPhone 12 Pro and iPhone 12 Pro Max. Demand for the entry-level iPhone 12 Mini, by contrast, is described as “a bit sluggish.”

The story also said Apple plans “an aggressive production schedule for its high-end computers,” including the MacBook Pro and the iMac Pro, and that Apple is planning a new Apple TV set-top box for watching streaming services.

Apple didn’t comment on any element of the Nikkei Asia report.

Wedbush analyst Dan Ives said 96 million iPhones in the first half of calendar 2021 would be “well ahead of Street expectations.” He said Street consensus for the fiscal year ending in September 2021 is for Apple to produce 215 million phones—although there is a bull case that would have the total north of 240 million.

Ives continues to see “an unprecedented upgrade cycle for Apple with a major holiday season on the horizon over the coming weeks.” He maintained his Outperform rating and US$160 target on Apple shares.

Apple shares closed up 5.01% to $127.88 Tuesday as the Dow Jones Industrial Average rose 1.1%.

U.K.-listed Intermediate Capital Group plans to sell one of Singapore’s largest independent tertiary education institutions, which could be valued at as much as 700 million Singapore dollars, equivalent to US$526 million, people familiar with the situation said.

The alternative asset management company, which acquired PSB Academy in 2018, is working with corporate advisory firm Rippledot Capital Advisers to explore options, the people said.

ICG and Rippledot declined to comment.

The U.K.-based company, which has $107.0 billion in assets under management as of the end of 2024, acquired PSB Academy from Baring Private Equity Asia for an undisclosed price.

Set up in 1964, PSB Academy currently hosts over 20,000 students each year and offers certification, diploma and degree courses. It has operations across Asia, including Indonesia, China and Sri Lanka.

The Asian education sector has become increasingly attractive to private-equity firms and strategic investors due to rapid urbanization and a fast-growing middle class that can now afford higher education for their children.

In 2021, private-equity firm KKR invested in EQuest Education Group, Vietnam’s largest private education institution. A year before, China Maple Leaf Educational Systems paid S$730.0 million to buy Canadian International School in Singapore.