In the month of September, Apple unveiled its latest cameraphone lineup which consists of the standard iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max. For the initial time in its history, Apple has reduced the starting value of a model upgrade. Even with the introduction of a secondary rear digital camera and newer chipset, Apple priced the iPhone 11 for $699 what is considerably lower than its predecessor, iPhone XR that started at $749.
Apple iPhone 11 According to a Nikkei report, the reduction in value has resulted in much better than expected demand of the fresh smarpthone. Subsequently, Apple has asked its suppliers to ramp up production of iPhone 11 lineup by upto 8 million units. While irrelevant, this figure is equivalent to which Google’s annual phone shipment for the existing year seems to be like.
After the report was published, the share price fo Apple’s component manufacturers rose in Japan. Japan’s Minebea Mitsumi closed up 3%, Japan Panel rose by almost 2%, while Murata Manufacturing and Alps Alpine Furthermore gained.
Having said that, suppliers are maintaining a cautious stance as they are unsure whether Apple can sustain the surge in demand for an extended period or not. Another factor that may hinder iPhone sales in future is the China tariff that Washington is supposed put into effect from the 15th of December. Thanks to this, Apple will have to pay a 10% tariff on products that are imported from China.
News in the past have claimed that if such a tariff is put into place, Apple goals to absorb them until it can negotiate a deal with its government or move the iPhone work to additional country which is easier said than done. However Apple is still to deliver a declaration and if it passes on the tariff hike on to customers by increasing price tag, the sales may plummet. Therefore, the cautious stance of Chinese suppliers makes sense.iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max
Yasuo Nakane, head of global technical research at Mizuho Securities, said his company has revised up 2019 iPhone handiwork estimates to 194 million units from 178 million. But they are yet less than the 208.8 million iPhones sold in 2018.
Whereas Apple seems to be optimistic about the demand of the iPhone 11, only time will reveal, if it is able to beat income of the iPhone X lineup from yesteryear.
