Apple is likely seeing a surge in demand for its new iPhones with improving business environment following increased vaccinations, and as majority of people across the globe continue to live online as the pandemic sees no end in the near future.

As per a report by Bloomberg news citing people with knowledge of the matter, the tech major is seeking to boost new iPhone production by as much as 20 percent in the year 2021.

Along with the post-vaccine business environment, the expected demand growth for iPhones also reflects sanctions against its major rival Huawei Technologies Co.’s smartphone business.

Apple reportedly has asked suppliers to produce as many as 90 million next-generation iPhones this year. In recent years, the company has maintained the production of a new device at around 75 million units for the initial run from its launch through the end of the year.

Meanwhile, the iPhone production is not expected to be impacted by the ongoing chip shortage.

It is expected that the next iPhones will be Apple’s second launch with 5G. The company is also planning updates to all of the current models, while the design will remain largely unchanged. The phones are codenamed D16, D17, D63, and D64, and will be launched in September. In the prior year, annual event to launch iPhone 12 was conducted in October.

Apple is also preparing to launch several other products later this year, including new MacBook Pro laptops, iPad mini and entry-tier iPad models and Apple Watches with updated displays.

The news about planned production increase is benefiting the shares of Apple as well as its key component makers. In pre-market activity, Apple’s shares were gaining around 2 percent, and its key chipmaker Taiwan Semiconductor Manufacturing Co.’s shares were up 1.4 percent.

In Asian trading, Taiwanese connector and power-pack maker Cheng Uei Precision Industry Co., lens maker Largan Precision Co. and Japanese electronic component maker Alps Alpine Co. all traded higher.

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