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Apple Hits Record High As It Ramps Up iPhone 8, HomePod Lines

Apple (AAPL) stock climbed to an all-time high on Wednesday as the consumer electronics giant ramped up production of its upcoming iPhone 8 smartphone and HomePod smart speaker.

Apple added 0.3% to close at 163.35 on the stock market today. In intraday trading, it hit a record high of 163.89, its second all-time high in as many days.

Susquehanna Financial Group analyst Mehdi Hosseini said his checks with Apple's supply chain partners in South Korea and Taiwan indicate that Apple is increasing its planned production of the iPhone 8 during the first quarter of 2018.

Production of the OLED-screen iPhone 8 is "off to a slow start" but forecasts remain unchanged for about 90 million units to be built in the second half of 2017, Hosseini said.

Meanwhile, Apple appears to have increased its first-quarter production of the iPhone 8 handset to 55 million units, up from the prior 50 million, he said.

Apple iPhone 8 production will "have a strong tailwind into '18," Hosseini said.


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He expects the iPhone 8 to represent about half of Apple's smartphone production mix in the second half of the year, rising to more than 70% in the first quarter of 2018.

Apple's manufacturing ecosystem is planning to make 200 million OLED-screen iPhones in 2018, Hosseini said.

Apple is widely expected to announce the iPhone 8 at a media event on Sept. 12. In addition to a new display technology, the iPhone 8 is rumored to feature wireless and fast wired charging, facial recognition and augmented reality capabilities.

Apple also is beginning production of its HomePod smart speaker, which is seen as the company's answer to the Amazon (AMZN) Echo line of voice-response devices. HomePod is set to go on sale in December.

Supply chain checks suggest that Apple is planning to build and ship 10 million to 15 million HomePods in the fourth quarter, Hosseini said.

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