Apple has reportedly told its suppliers to increase production of the iPhone 11 by up to ten per cent after demand for the new range was higher than expected.
According to Nikkei, the company has ordered an additional eight million units following a successful launch last month.
Initial orders had been conservative than previous years, no doubt influenced by lacklustre demand for the iPhone XR and a slowing smartphone market.
iPhone 11 demand
The decision to offer the flagship iPhone 11 at a lower price than the previous entry level model has proved to be correct. Apple has traditionally pursued the higher end of the market, with those seeking a cheaper iPhone forced to buy last year’s model or one of the few cheaper handsets it has produced.
However nomenclature like ‘iPhone 5C’ and ‘iPhone XR’ made it clear these models were inferior to the fully-fledged iPhone 5S and iPhone XS flagships. To remedy this perception, the iPhone 11 is the entry level model, with the iPhone 11 Pro and 11 Pro Max the premium options. This means the cheapest option is also Apple’s flagship device.
The Cupertino-based company will be pleased at increased demand after being forced to cut its sales forecast earlier this year.
Nikkei says suppliers are cautious however and fear the higher level of orders may not be sustainable.
“Demand is good for now. But we have to be careful not to be too optimistic,” one company is quoted as saying. “I hope that this year's peak season lasts longer than last year.”
Figures from IDC show smartphone shipments are set to fall for the third consecutive year but improved market conditions and the launch of 5G networks will see the market return to growth in 2020.
The iPhone 11 does not support 5G, but it is expected the first compatible handset will be launched next year.
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Via Nikkei (opens in new tab)