Demand for the iPhone 11 and 11 Pro series has been exceptionally strong. We mentioned earlier that it likely contributed to Apple’s relatively high Q4 revenue forecast. Now, according to a Nikkei report, Apple requested suppliers to increase their iPhone 11 and 11 Pro production by an additional 10 percent.
What this means is that as many as an extra 8 million iPhone units will be created. This is a strong indication that more people than ever are buying iPhones this year. Nikkei’s source has direct information about the production situation. This is what they had to say:
“So Far Much Busier than we expected,” Says source on iPhone Production
“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.”
While overall design hasn’t changed much this year, the iPhone 11 Pro series introduced a triple camera setup for the first time. Together with the upcoming Deep Fusion technology, the new cameras will offer significantly better image quality. Moreover, the affordable iPhone 11 debuted at a price that’s $50 less than the iPhone XR. This makes both product lines attractive to older iPhone owners. While the A9-based 6S has still received the iOS 13 update, the A13 chip offers a smoother, faster experience across the board. A cheaper entry level iPhone and premium SKUs with great cameras offer something for all buyers.
Apple this year may broaden their product line even further. Rumors point to the existence of an iPhone SE 2. Much like the original iPhone SE offered 6S internals in an iPhone 5S frame, the iPhone SE 2 may feature a modern A13 chip in a frame similar to the iPhone 8’s.
All in all, the increased production is a positive sign for Apple. It also indicates that the company has been resilient in the face of the ongoing US-China trade war. It’s been able to deliver iPhones people are buying without compromising cost or features.