Apple Inc has asked chipmaking partner Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to increase its output of A-series processors this quarter in order to satisfy higher-than-anticipated iPhone demand, people familiar with the company’s plans said.
The iPhone 11 and 11 Pro models were well received on their debut last autumn, while their sales in China have been particularly strong, outselling 2018’s releases in a market that has otherwise been shrinking.
Even without 5G wireless networking, iPhone demand has outperformed the market and Apple’s expectations, and the company asked assembly partners to increase their production of the latest generation.
The most affordable iPhone 11 model, equipped with an LCD screen, was a particular driver for the increased demand, one person said.
Along with the popularity of existing models, Apple’s business with TSMC is also set for a boost from an imminent iPhone SE successor, a low-cost model that would begin mass production next month ahead of an official unveiling as soon as March. It would be built around the same processor as the iPhone 11 generation.
TSMC spokeswoman Nina Kao (高孟華) said that the company does not comment on its business with any specific customer.
An Apple spokeswoman declined to comment.
The Taiwanese chipmaker recently reported earnings above most analysts’ expectations and it forecast another good quarter ahead.
Although it faces potential headwinds from the threat of tightening US sanctions on key customer Huawei Technologies Co.(華為), analysts said they believe additional demand from Apple and Advanced Micro Devices Inc would replace any potential Huawei drop-off.
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