Apple has reportedly asked its suppliers to increase the production of the iPhone 11 by 10% following strong demand. The increase means Apple is now looking to produce 8 million additional units of the iPhone 11.
As per the Nikkei report, Apple is seeing strong demand for the iPhone 11 and iPhone 11 Pro, with the lower demand for the iPhone 11 Pro Max seeing the company reduce production for it.
“This autumn is so far much busier than we expected,” one source with direct knowledge of the situation said. “Previously, Apple was quite conservative about placing orders,” which were less than for last year’s new iPhone. “After the increase, prepared production volume for the iPhone 11 series will be higher compared to last year,” the source said.
It is clear that there is a strong demand for the iPhone 11 and iPhone 11 Pro series this year. Usually, we hear reports of Apple bumping or reducing production following the launch of new iPhones.
This year, the company was expected to ship around the same number of iPhone units as the iPhone XS last year. However, the initial demand for the iPhone 11 series seems to be higher than anticipated which has led Apple to increase production. The reduced price of the iPhone 11 seems to have worked in Apple’s favor as it is attracting more customers than anticipated. This will have a negative impact on Apple’s ASP though, which will be clear once it announces its Q3 and Q4 financial reports.
The triple-camera setup, refreshed design, and longer battery life of the iPhone 11 Pro also seems to have clicked among consumers as signaled by its high demand. While the early signs are positive, it is important that this demand sustains itself as there is usually a huge drop in iPhone sales after the holiday season ends.[Via Nikkei]