Apple reportedly hikes production of 2019 iPhone models by 10%

Apple reportedly hikes production of 2019 iPhone models by 10%
Amid a sluggish smartphone market, most analysts had low expectations in terms of sales forecasts for the 2019 Apple iPhones. But after a surprisingly firm pre-order period kicked off, reliable TF International analyst Ming-Chi Kuo raised his estimate of 2019 iPhone shipments to a range of 70 million to 75 million units from his previous forecast calling for Apple to ship 65 million to 70 million units. The analyst based this on the aggressive pricing of the iPhone 11 with the base 64GB model priced at $699 or $50 lower than the launch price last year of the 64GB iPhone XR. Kuo said that the lower pricing should entice many iPhone 6, iPhone 6s and iPhone 7 owners to upgrade.

And that was followed up by another report released last month, this one by venture capital firm Loup Ventures. The firm noted that traditionally, the lines that formed outside certain Apple Stores on the new handsets' release day are a good predictor of strong demand during the current iPhone cycle. And according to the Nikkei Asian Review, this better than expected demand for the new iPhones has resulted in Apple telling its suppliers to bump production by as much as 10%. This means that Apple believes it needs an additional seven to eight million units to meet this demand. The report notes that the increase in production equals the entire amount of Pixel handsets Google is expected to ship this year. Of course, what the report fails to mention is that for Google, this year's Pixel shipments will show growth of as much as 100% making the brand one of the fastest-growing in the U.S. smartphone market.

Tariffs will be imposed on the Apple iPhone starting on December 15th

Apple CEO Tim Cook recently told a German publication that sales of the iPhone 11 family are off to "very strong start" and said that he couldn't be happier with the demand for the new phones. Sources did point out that while production of the "more affordable" iPhone 11 and iPhone 11 Pro are being hiked, Apple has cut orders for the iPhone 11 Pro Max by a tad. The latter is the top-of-the-line model with a price that starts at $1,099.

One anonymous employee at an Apple supplier, referred to as having an "executive-level" position, was cautiously optimistic. He said, "Demand is good for now. But we have to be careful not to be too optimistic. I hope that this year's peak season lasts longer than last year." Meanwhile, there is a factor that could explain why the new models are off to a better than expected start. Starting on December 15th, the U.S. will start imposing a 10% tariff on smartphones imported from China. But since tariffs are nothing more than an import tax, Apple will be forced to pay this additional fee. Then, it will be up to the company to either eat all or some of the extra costs or pass it along to consumers in the form of higher prices.

Considering that Apple has dramatically included a price cut for the iPhone 11 this year, we'd expect the company to completely eat the tax itself. It won't be tasty and Apple might gag on it, but it is no different than what the company has already been doing with other products like the Apple Watch, AirPods and certain cases for the iPhone and iPad. While the company designs its products in Cupertino, the majority of production is done in China by partners like Foxconn and Pegatron. Even though Apple could end up paying for all of the additional costs itself, U.S. consumers might be moving up their iPhone purchases just in case prices do go up.

This year's new iPhone 11 series features a new 12MP Ultra-Wide camera, a Night Mode to take viewable photos in low-light conditions, and iOS 13.2 will deliver Deep Fusion. This is a computational photography technology that uses AI to create a single photograph from multiple exposures. The result is a sharper image with less noise. Apple also increased the battery life on the new models with increases of as much as one hour (iPhone 11) to as much as five additional hours (iPhone 11 Pro Max). And the iPhone 11 will now survive submersion to 6 and a half feet for as long as 30 minutes while the "Pro" models can be submerged to a depth of slightly over 13 feet.



1. TBomb

Posts: 1579; Member since: Dec 28, 2012

Didn't they say this happened last year too? And the year before that? And the year before that? .....

21. DBozz

Posts: 71; Member since: Sep 19, 2019

They just trying to make a positive impact on apple's shares by saying thay. Its a normal process to make a balance between demand and production. But they make news out of it to create ripple effects on apples shares

5. chris2k5

Posts: 289; Member since: Nov 17, 2012

Looks like S10 and Note 10 family predicted sales for 4 quarters is going to be half of iPhone 11 family. Ouch...

6. darkkjedii

Posts: 31339; Member since: Feb 05, 2011

How's that an ouch, when Samsung makes iPhone displays and gets paid for them, and the Galaxy lineup sales well also?

7. mackan84

Posts: 561; Member since: Feb 13, 2014

I find it funny how these disputes keep repeats themselves every year. Even if Apple lose some sales they’ve been like the flagship-sales king since 2012. Nothing is going to change, just less sales in premium that probably will stabilize eventually.

13. darkkjedii

Posts: 31339; Member since: Feb 05, 2011

Exactly. It's not even a surprise at this point, yet somehow Samsung stays in business.

27. Deadeye

Posts: 111; Member since: Jul 26, 2019

If it´s half of the iPhone 11 family, it´s a great success. Given the fact, that if you want a premium Android device, you have like dozens of options among all manufacturers. Not just 3 (and one of them is not a premium device). On top of that, they have A series and M series which are selling well. Then there is this group of people brainwashed by Apple marketing team who´d buy an iTurd if that was an option.

8. mrochester

Posts: 1021; Member since: Aug 17, 2014

I guess this is different to the usual ‘Apple cuts orders for latest iPhone’ news you normally get.

10. midan

Posts: 3019; Member since: Oct 09, 2017

Just like i expected, those new cameras are game changer.​2404292386816 When people see this kind of photos they just want go and buy the phone. That is high key light mono filter. Just regular photo from the burger place. I bought the Pro in day one and i already got two people to buy one by just showing them the photos i took and the new wheel zoom and crop out from frame and they don’t even know about deep fusion yet.

12. mackan84

Posts: 561; Member since: Feb 13, 2014

He did a video on that picture. He just edited on the phone right there.

17. Back_from_beyond

Posts: 1441; Member since: Sep 04, 2015

I wouldn't start celebrating just yet, Apple also started by ordering less of the new models. A lot of this will come back to the iPhone 11 price getting bumped to $799 in December after which the sales will surely drop.

25. Vokilam

Posts: 1287; Member since: Mar 15, 2018

I dont care for watches, but giving you props for this short personal review. Good job.

26. midan

Posts: 3019; Member since: Oct 09, 2017

"Apple’s flagship iPhone 11 Pro Max tops Consumer Reports’ smartphone ratings" Even consumer reports thinks new iPhones are best phones in the market.

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