iPhone 11 Demand Expected to Be Similar to iPhone XS Series: Report

Apple suppliers are readying to produce components for up to 75 million iPhones.

iPhone 11 Demand Expected to Be Similar to iPhone XS Series: Report

iPhone 11 is expected to sport triple rear cameras

Highlights
  • Apple suppliers can ramp up production if demand changes
  • Holiday quarter sales last year were around 70 to 80 million
  • iPhone 11 series will be powered by the new A13 chip
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Apple appears to be expecting stable demand of the iPhone 11 this year. The company is reported to have told suppliers to manufacture 75 million new iPhone units in the second half of 2019, a number similar to the same period last year. Of course this isn't the final manufacturing number, and it may change based on demand, market interest, and other factors. This number for now suggests that Apple doesn't think that the ihone 11 could do better (or worse) than the iPhone XS series last year.

Bloomberg reports that Apple's suppliers are looking to produce components for up to 75 million new iPhone units in the second half of this year. This number is roughly the same as a year earlier, the report states, citing people familiar with the matter. This signal's that Apple forecasts a stable demand this year as well, as opposed to a growth in the sale numbers. However, given that the overall smartphone market is on a decline, and the US-China trade tensions have escalated this year, Apple's ‘steady' forecast is a practical one.

Apple does not reveal its iPhone shipment numbers any more, but the report says analysts predict Apple sold 70 million to 80 million new iPhones in the second half of 2018. The report also says that Asian suppliers could ramp the production to 80 million if required in the future. Foxconn has raised salaries of employees by 10 percent to ensure workforce security during peak-period.

In the last holiday quarter, Apple generated $52 billion revenue from the iPhone lineup – a 15 percent decline. This year, Apple hopes to get to the same target, if not more. iPhone models have gotten increasingly expensive every year, and there are only as many people willing to shell more than $1,000 for a smartphone. Apple's practical demand forecast shouldn't come as a surprise, even if the company is packing its next-gen iPhone models with some cracking features.

The iPhone 11 series is rumoured to sport a triple rear camera setup, a A13 chip, a new Taptic Engine that will replace 3D Touch, and a Retina Display.

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