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Apple has asked suppliers to increase production of its iPhone 11 models by up to 8 million units, or about 10 percent, Nikkei Asian Review reported on Friday, citing better than expected demand.
“Previously, Apple was quite conservative about placing orders,” which were less than for last year’s new iPhone, said the Nikkei quoting a source.
“After the increase, prepared production volume for the iPhone 11 series will be higher compared to last year.”
Sources cited by Nikkei said that the recent surge in iPhone orders is concentrated in the cheapest iPhone 11 model and the iPhone 11 Pro model, while Apple has slightly revised down orders for its top range model, the iPhone 11 Pro Max, which has a starting price of $1,099.
The newspaper also reported that suppliers remain cautious and said they were concerned that the higher level of orders would not be sustained.
“Demand is good for now. But we have to be careful not to be too optimistic,” an executive-level source said in the report. “I hope that this year’s peak season lasts longer than last year.”
Apple did not respond to a Reuters request for comment outside regular US business hours.
The company launched its three new iPhone models in September and reduced the starting price of the model upgrade, despite better cameras, to $699, compared to $749 for last year’s iPhone XR.