Apple is looking to create a stockpile of inventory of 5G iPhones amidst the uncertainty due to the coronavirus outbreak. The company has informed many of its suppliers that it intends to make about 213 million iPhone units through March 2021, up 4% from the same timeframe last year. The increase in units come despite the world economy going into a deep recession due to the COVID-19 pandemic.
As per a source, Apple will be splitting the production between its current iPhone models and the upcoming ones 50:50.
“Apple’s production outlook is pretty bullish, and we will need to assess whether it is based on a realistic demand [forecast],” said one executive at a components maker. “Actual production could be 10% to 20% lower,” he said.
The company is looking to create a stockpile of the 5G iPhone 12 to avoid shortage during the fall and holiday season later in the year. The virus outbreak has also led to a lot of uncertainty and for a steady supply of iPhones, Apple needs to ensure it has enough inventory. The company has currently closed all of its retail stores outside of China and it is only selling products via its online store. This has made it difficult for the company to gauge demand for its products.
Apple is reportedly gearing up to launch up to four new iPhone 12 models this year with 5G connectivity and a smaller notch. Two models will feature a dual-camera setup and miss out on a LiDAR scanner. To keep the price in check, Apple will be using an aluminum chassis on them. The other two models will be the high-end one and feature a triple-camera setup, a LiDAR scanner at the rear, and a stainless steel chassis.[Via Nikkei]