Sat, Oct 05, 2019 - Page 10 News List

Apple to increase output of iPhone 11s, ‘Nikkei’ says


Apple Inc has told suppliers to increase production of its latest iPhone 11 range by as much as 10 percent to meet stronger-than-expected sales of the new handsets, the Nikkei Asian Review reported, affirming resilient demand for the company’s most important gadget.

The boost would add 7 million to 8 million units to what the Cupertino, California-based company had initially planned on, the Nikkei Asian Review cited anonymous sources as saying.

Shares in Apple suppliers from Murata Manufacturing Co and Alps Alpine Co in Tokyo to AAC Technologies Holdings Inc in Hong Kong climbed after the report.

An Apple spokesperson in Japan declined to comment.

It is not unusual for Apple to gradually ramp up orders as it gauges demand after launch and builds up to the holiday shopping season.

The US company has stuck with a previous projection for sales of up to 75 million new iPhones in the second half, people familiar with the matter said, asking not to be identified discussing internal estimates.

However, Apple chief executive officer Tim Cook has telegraphed strong initial sales of his company’s most profitable product, spurring expectations that demand for the iPhone 11 would hold up, despite a global smartphone malaise.

Cook yesterday told French daily Les Echos that he foresaw a new growth cycle in the market.

Major improvements to the iPhone’s camera, including the addition of a new ultrawide lens for better architectural and tourist photos, alongside better battery life and improved durability might have resonated with consumers.

A decision to lower the iPhone 11’s starting price by US$50, to US$699, might also have drawn in more budget-conscious consumers in a weaker global economy.

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