Apple shares gain for a second straight session on Friday, iPhone 11 model production increased by 10%, Nikkei reports

According to a report by Nikkei Asian Review, Apple Inc (AAPL) has requested that suppliers raise production of iPhone 11 models by up to 8 million units (or nearly 10%).

Apple shares closed higher for a second consecutive trading session on NASDAQ on Friday. It has also been the sharpest daily surge since September 11th. The stock went up 2.80% ($6.19) to $227.01, after touching an intraday high at $227.47, or a price level not seen since October 1st ($228.22).

Shares of Apple Inc have added 43.91% to their value so far in 2019 compared with a 17.76% gain for the benchmark index, S&P 500 (SPX).

In 2018, Apple’s stock went down 6.79%, thus, it underperformed the S&P 500, which registered a 6.24% loss.

”Previously, Apple was quite conservative about placing orders”, which registered a drop compared to those for last year’s new iPhone, Nikkei Asian Review reported.

”After the increase, prepared production volume for the iPhone 11 series will be higher compared to last year,” the same media said.

According to Nikkei, the recent increase in orders is focused on Apple’s cheapest iPhone 11 and iPhone 11 Pro models. On the other hand, orders for the iPhone 11 Pro Max, Apple’s top range model, have been slightly reduced.

”Despite all the perceived black clouds from being the poster child of the current U.S.-China trade tensions, Apple is seeing a very strong iPhone 11 demand trajectory and defying many skeptics that have been yelling fire in a crowded theater over the past few months,” Wedbush analysts wrote in a client note, cited by Reuters.

J.P. Morgan analysts also revised up their iPhone shipment projection, as they now expect 1 million units more sold compared to their prior forecast.

Analyst stock price forecast and recommendation

According to CNN Money, the 37 analysts, offering 12-month forecasts regarding Apple Inc’s stock price, have a median target of $240.00, with a high estimate of $270.00 and a low estimate of $150.00. The median estimate represents a 5.72% upside compared to the closing price of $227.01 on October 4th.

The same media also reported that at least 19 out of 41 surveyed investment analysts had rated Apple Inc’s stock as “Buy”, while 16 – as “Hold”. On the other hand, 4 analysts had recommended selling the stock.