Apple has asked suppliers to increase production of its iPhone 11 models by up to 8 million units, or about 10%, Nikkei Asian Review reported recently, citing better than expected demand.
“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”. said the Nikkei quoting a source.
Nikkei also says that the increase in orders is mostly focused on the $699 iPhone 11 and the $999 iPhone 11 Pro, with production for the most expensive iPhone 11 Pro Max SKU revised down slightly.
The iPhone 11 has attracted buyers with an improved wide-angle and new ultra-wide lens, upgraded chips and processors, a new back glass design, and a lower price point. Whereas the iPhone XR sold for $749 last year, the iPhone 11 starts at $699.
“Demand is good for now. But we have to be careful not to be too optimistic,” an executive-level source said in the report. “I hope that this year’s peak season lasts longer than last year.”
The new $699 base price for the iPhone 11 seems to have hit the sweet spot of strong consumer interest without needing further price action. Of course, demand levels can change wildly as time goes on, so the supply chain is still slightly wary of how long the peak production period will last, especially as the US-China trade war fears continue to loom over the smartphone market.