Apple boosts production of iPhone 11: Source

Apple boosts production of iPhone 11: Source

According to the Nikkei Asian Review, Apple has said to increase the production of its latest range iPhone 11 by 10% or 8 million units.

Apple CEO Tim Cook's new strategy appears to be boosting orders to attract budget-conscious consumers with cheaper models amid a weak global economy. The increase in orders of 7 and 8 million units is equivalent to the total annual phone shipments by Google this year, beating the growing iPhone in the US Apple market.

"This decline is a lot busier than we expected," said a source with direct knowledge of the situation. "Last year, Apple was fairly conservative when placing orders," which were lower than the new iPhone last year. "After the increase, the volume of production ready for the iPhone 11 series will be higher than last year," the source said.

Shares of Apple component manufacturers gained momentum after the publication of the Nikkei report, excluding the market in Japan in general. Japan's Media Mitsumi closed down 3%, Japan Display problem makers of iPhone displays rose nearly 2%, while Murata Manufacturing and Alps Alpine also won.

Apple launched its three new iPhone models iPhone 11, 11 Pro and 11 Pro Max in early September, and despite being better for the first time in its history, reduced the initial price of the model update to $ 699 with a better camera than the previous. The year was reduced to $ 749 for the iPhone XR.

According to IDC Research Company, Apple's new budget strategy came when the global smartphone market is expected to decline for the third consecutive year. In January, Cook admitted that "price is a factor" behind Apple's slowdown in sales, especially in emerging markets.

The recent increase in iPhone orders focused on the cheaper iPhone 11 model and the iPhone 11 Pro model, sources said, while Apple made slightly revised orders for its high-end model, the iPhone 11 Pro Max, which has an initial price of $ 1,099.

Cook recently told the German newspaper Bldg that he could not be happier with the launch of the iPhone 11 and that it had a "very strong start" to sales. Apple's share price has risen nearly 40% this year and is now nearing its all-time high in October 2018.

However, suppliers remain cautious and say they were concerned that orders at the highest level would not be maintained.

An executive-level source told Nikkei, "The demand is good for now. But we should not be too optimistic." "I expect this year's high season to last longer than last year."

One factor that may have helped temporarily boost demand is that Apple's iPhone 11 is still manufactured in China, and Washington has temporarily deferred a 10% tariff on electronic imports manufactured in China. Is done. A delay in the rate from September 15 to December 15 will help demand during the Thanksgiving and Christmas shopping seasons. Donald Trump has tightened his stand on trade talks with China, stating that he did not want an interim truce in September.

Still, the increase in iPhone orders is a welcome change in Apple's recent fortunes based in California.

Last year, Apple asked the flagship iPhone assembler Foxconn, formally marketed as the Honorable High Precision Industry, and Pegatron arrives on the iPhone XR shelves just a few weeks later to cancel additional production, as Nikkei Asian reported in November.

Then, in January, Apple made a rare move when it cut its quarterly sales forecast, which slowed China's weak demand for the iPhone as its sales slowed.

Therefore, the continued increase in demand will now counteract the decline in iPhone sales in 2018, the company's first iconic phone launched in 2007.

He added, "Apple's pricing strategy so far this year has failed with some initial sales and pre-orders ... However, given the weakening of the world economy and further uncertainties, we are concerned that if good demand is prolonged Time will last, ”said Chiu Shih-feng, a veteran smartphone analyst at the Taiwan Institute of Economic Research.

"Even though the second half is definitely better than the first half, we need to monitor whether price lower average sales can have an impact on revenue."

Yasuo Nakane, head of global technology research at Mizuho Securities, said he revised the iPhone production estimates for 2019 from 178 million to 194 million units, although this is lower than the 208.8 million iPhones sold in 2018.

All models in the iPhone 11 range have better cameras than last year and are equipped with the same facial recognition and wireless charging features as of 2018.

Unlike its rivals Samsung Electronics, Huawei Technologies, Xiaomi, and Oppo, Apple has not introduced 5G compatibility, the next-generation wireless communications standard that allows faster data transfer and in the first half of 2019, Apple launched the iPhone Shipment Shipped. According to IDC, its main competitors, Samsung Electronics and Huawei Technologies, about 25%. Luna is very poor. The two major smartphone manufacturers in the world saw 2 declines respectively and an increase of about 26% in shipments during the same period.

Apple declined to comment.