Apple Inc (AAPL) is aiming to ship 90 million next-generation iPhones in 2021, a 20% jump from a year ago as it anticipates additional demand after the COVID-19 vaccine rollout, Bloomberg reported on Tuesday, citing sources. 

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What Happened: The Cupertino, California-based tech company usually ships roughly 75 million units for a device’s initial run after the launch and through the end of the year. 

The upcoming launches this year will also be Apple’s second with 5G technology, a highly-anticipated upgrade.

Apple has asked suppliers to build up to 90 million units but the actual volume could be a few million units shy of the target, the Bloomberg report warned, citing a source. 

The surge in shipment orders is also linked to Huawei Technologies Co.’s sanction-stricken smartphone business.

Why It Matters: The iPhone sales contribute over half of Apple's total revenues and are key to its growth. The iPhone update lineup this year will be more incremental than last year’s iPhone 12, and will be focused on processor, camera and display improvements, people familiar with the matter told Bloomberg. The tech giant is planning updates to all of the current models that are expected to be announced in September.

The majority of assembly for the upcoming 6.7-inch Pro Max model and the 6.1-inch Pro will be done by Hon Hai Precision Industry Co Ltd. (HNHPF), while Taiwan Semiconductor Manufacturing Company Limited (TSM) will be making the chips.

Price Action: Apple shares closed 0.79% higher at $145.64 on Tuesday.