Apple intends to increase production of the new iPhone 11
Apple has put forward a requirement for suppliers to increase production of the iPhone 11 by 8 million units, that is, 10% more than the initial volume. This is due to higher than expected demand for the new iPhone.
The increase in the number of iPhones produced seems to confirm Apple's new strategy, which is aimed at attracting the attention of buyers to cheaper models.
An interesting fact: 7-8 million smartphones, which Apple plans to release additionally, equals the total annual supply of Google smartphones, which is Apple's growing competitor in the US domestic market.
This year, Apple introduced three new models - iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max. At the same time, the basic version of the device is offered at a price lower than last year’s counterpart. According to IDC analysts, Apple’s new strategy, aimed at increasing the production of more affordable iPhone models, has arisen due to the expectation that the global smartphone market will continue to decline (the decline has been observed for the third year in a row). At the beginning of 2019, Apple recognized that the slowdown in smartphone sales is possible due to the cost of the iPhone, especially in emerging markets.
The recent surge in orders for the new iPhone has predominantly affected the iPhone 11 and iPhone 11 Pro. Apple has confirmed that currently the demand for new iPhones is at a good level and the company expects this trend to last longer than last year.