Apple seems to be expecting approximately the same demand as last year for its three new iPhone models set to be announced this fall.
According to Bloomberg’s anonymous sources, Apple’s suppliers are gearing up to produce parts for up to 75 million new iPhones in the second half of 2019, roughly the same number as the year before. This implies that the smartphone maker anticipates a stable demand, in spite of the U.S.-China trade tensions and the growing market share of Chinese rivals like Huawei.
Apple’s suppliers in Asia are preparing to make components for iPhone 11, iPhone 11 Max, and iPhone 11R – the three new models to be released ahead of the holiday season, the people who requested to remain unidentified told Bloomberg.
If demand increases, the U.S. company’s Asian partners could accelerate the production to as many as 80 million new devices, an anonymous source familiar with the matter disclosed. Furthermore, the leading iPhone assembler Foxconn Technology Group is allegedly taking on more new workers in Shenzhen and offering salaries about 10% higher than the previous year in order to achieve full staff capacity during the peak production season.
However, the fact that Apple expects customer demand to be as high as last year doesn’t mean it will be able to sell all 75 million units. Analysts have projected iPhone shipments to drop by some 13% and reach a total of 189 million in the 2019 fiscal year.
“Apple’s growth has become more cyclical and slowed along with the global smartphone market, leaving it dependent on iPhone upgrades to drive sales,” Bloomberg Intelligence analysts Boyoung Kim and John Butler said. “Apple’s inability to raise iPhone prices much higher is constraining growth. Weakness in China due to competition and the trade war with the U.S. remains an issue.”
After unit growth turned negative in the closing quarter of 2018, the tech giant stopped revealing iPhone shipment numbers and began providing data about other, successful metrics regarding its services such as Apple Music, and Apple TV+. According to analysts’ estimates, Apple sold between 70 and 80 million new devices in the second half of last year when it released iPhone XS, XR, and XS Max.
The California-based tech firm has announced new iPhones in September every year since 2012 with new models going on sale shortly after, in the final weeks of the same month. Presuming that the trend continues, consumers can look forward to three new iPhone models powered by iOS 13 in September of this year, too. The latest iPhone 11 models will boast a 6.1-inch and 6.5-inch OLED displays and a triple camera system, as rumored by 9to5Mac.