Apple reportedly ramping up iPhone 11 production
Apple has reportedly asked suppliers to increase production of the iPhone 11 due to stronger-than-expected demand.
The iPhone giant raised its order by 10 percent, or 8 million units, the Nikkei Asian Review reports. Apple did not immediately respond to FOX Business’ request for comment.
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The Nikkei report comes two days after Wedbush Securities said its checks indicated suppliers were getting ready to ramp up production.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 166.82 | +0.98 | +0.59% |
“It appears half of the upside is currently coming from the iPhone 11 and the other half from the iPhone 11 Pro/Pro Max,” Wedbush analyst Dan Ives wrote on Wednesday. “In terms of units, we now believe that the new phones could exceed the 78 million to 80 million range (previously we expected 75 million - 80 million) for the launch period with our bias suggesting 80 million will now likely be exceeded.”
Ives says demand in China is “roughly double” last year thanks to the iPhone 11’s lower pricing, dual camera functionality and new colors. The least expensive version of the phone starts at $699 – 6.7 percent below last year’s iPhone XR.
Apple received some trade war relief when the U.S. Trade Representative’s office said the tariffs that were set to hit $300 billion worth of goods made in China – including the iPhone – would be delayed from Sept. 1 to Dec. 15. That will give holiday shoppers some time to buy the phone before the tariffs are raised from 10 percent to 15 percent.
“Despite all the perceived black clouds from being the poster child of the current US/China trade tensions, Apple is seeing a very strong iPhone 11 demand trajectory and defying many skeptics that have been yelling fire in a crowded theater over the past few months,” Ives wrote.
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Apple is set to report its fourth-quarter results on Oct. 30. Shares were up 40 percent this year through Thursday and were higher in premarket trading.