Apple's taking a conservative approach to 2019 iPhone production orders
Apple aims to better handle excess stock in 2020
Looking at the entire second half of 2019 in terms of manufacturing volume, it’s believed Apple has ordered 79 million iPhone 11 units which is actually down 7% from the 85 million iPhone XS & XR units it ordered last year. Cowen believes the lower production rate is an attempt to better handle excess inventories as Apple heads into 2020.
From what can be gathered, Apple’s biggest focus right now in terms of production seems to be successfully serving the North American market before mid-December when tariffs on Chinese imports are set to be applied. According to Rosenblatt, the California-based company is yet to make any changes to iPhone 11 Pro and iPhone 11 Pro Max manufacturing levels because it’s “already been aggressive enough to build inventory for the North American market.” However, Apple reportedly sped up production for the iPhone 11 (R) in August because of anticipated higher sales.
Consumers in the US aren’t presently expected to see any price increases but the threat certainly exists. This could lead to a sudden spike in demand by consumers attempting to avoid the tariffs which may result in a “stronger than seasonally normal” quarter for Apple, according to Rosenblatt.
iPhone 11 series announcement, release date, pricing
The iPhone 11 (R), iPhone 11 Pro, and iPhone 11 Pro Max or whatever Apple chooses to call them will all be announced next Tuesday, September 10. Last year Apple opted for a staggered release wherein the iPhone XS Max series arrived in September and the cheaper iPhone XR followed in October but this year all smartphones are expected to launch simultaneously on Friday, September 20. To ensure an early delivery, Apple should open up pre-orders a week earlier on Friday, September 13.