Apple Inc. has told suppliers to increase production of the latest iPhone 11 and iPhone 11 Pro lineup by as much as 10%, the Nikkei Asian Review reported.
The bump in production would add up to 8 million units to the current production plans as Apple seeks to meet stronger-than-expected demand.
The increase may validate Chief Executive Officer Tim Cook’s strategy of offering budget-conscious consumers less expensive models amid signs of a weakening economy, it said.
Major improvements to the iPhone’s camera, including the addition of a new ultrawide camera for better architectural and tourist photos, alongside better battery life and improved durability may have resonated with consumers. The entry point for new iPhones was also lowered for the first time, with the iPhone 11 starting at $699 or $50 less than its predecessor.
With the increase in production, Apple is anticipating selling more iPhones in the closing months of this year than it did during the same period last year, the Nikkei Asian Review reported. Shares in suppliers Murata Manufacturing Co. and Alps Alpine Co. climbed after the report.
Nearly every year, stories circulate about Apple cutting production in the months following the launches of new iPhones, but it’s frequently unclear whether production cuts are due to weaker-than-expected demand or simply anticipated scaling back following the initial rush of orders. Regardless, an increase in production this year appears to be a good sign for Apple.
Apple will also launch the iPhone SE2 with an A13 chip, the same found in the iPhone 11, during the first quarter of 2020, according to TF International Securities analyst Ming-Chi Kuo. Kuo has an excellent track record of predicting Apple products ahead of their release.