Apple increases production of iPhone 11 and iPhone 11 Pro on better-than-expected worldwide demand

The iPhone 11 Pro and iPhone 11 Pro Max, the most powerful and advanced smartphones ever, feature a triple-camera cluster
The iPhone 11 Pro and iPhone 11 Pro Max, the most powerful and advanced smartphones ever, feature a triple-camera cluster

Cheng Ting-Fang, Lauly Li, and Kensaku Ihara for Nikkei Asian Review:

Apple has told suppliers to increase their production of its latest iPhone 11 range by up to 10%, or 8 million units, the Nikkei Asian Review has learned, following better-than-expected demand worldwide for its new cut-price handset.

The order boost of between 7 million and 8 million units is equivalent to total annual phone shipments this year by Google… “This autumn is so far much busier than we expected,” one source with direct knowledge of the situation said. “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,” the source said.

The recent surge in iPhone orders is concentrated in the cheapest iPhone 11 model and the iPhone 11 Pro model, sources said, while Apple has slightly revised down orders for its top of the range model, the iPhone 11 Pro Max, which has a starting price of $1,099.

MacDailyNews Take: The surprisingly strong iPhone 11 and 11 Pro sales spotlight the importance of the camera, battery life, and durability – not to mention the psychological difference between a $699 starting price vs. $749.

Also, this bodes well for AAPL and the company’s market cap should nose back above the $1 trillion mark at the open.

5 Comments

  1. Seven to eight million smartphone in a year might be great for Google, but those numbers have nothing to do with Wall Street’s expectations of iPhone sales. Apple had better sell at least 210 million iPhones this year to beat last year’s 208 million or big investors are going to be rather displeased. And those iPhones had better be the ones with the highest storage options to boost the ASP through the roof. Google might get a free pass but Apple shareholders will never be that lucky. It’s nice to hear Apple is boosting production but we don’t know what the base number was. At one point I heard it was around 75 million to start, but that number wasn’t verified by Apple.

    When someone at Apple says “better than expected” it really doesn’t mean much. it’s not accepted if Tim Cook says something like that. It has to be a general consensus on Wall Street as their expectations are always higher than Apple’s.

    Will higher iPhone sales hold Apple’s market cap above $1T? Not necessarily. There can always be other reasons to devalue Apple stock. All an analyst has to say is that future iPhone sales will be weak this year because most people are waiting for the 2020 5G iPhones and the stock will immediately drop. While Apple stock goes up and down like a roller-coaster, Microsoft stock stays solidly above $1T with the greatest of ease. Microsoft shareholders (with a solid 75% institutional ownership) are nothing like those weak-kneed Apple shareholders who dump their stock at a moment’s notice. I’m not certain Apple can maintain a $1T market cap without an enterprise cloud business because that’s what Wall Street considers a guaranteed high-growth market.

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