The Strategist

Apple plans to increase production of new iPhones by 20%

07/15/2021 - 04:16

Apple has ordered 20 per cent more new iPhones from suppliers than it has usually ordered in recent years, sources told Bloomberg. The new smartphones will feature upgraded processors, cameras and displays, they said.

Public Domain Pictures
Public Domain Pictures
Apple has asked suppliers to produce 90 million next-generation iPhones this year, sources told Bloomberg. The agency notes that this is 20% higher than the figure the company has set in recent years of around 75 million smartphones between the launch of the device and the end of the year. 

An important factor in Apple's increase in smartphone orders is the blow to China's Huawei business from US sanctions, said a Bloomberg source familiar with the company's US strategy. Although Apple has been asked to produce up to 90 million devices, the actual number could be several million lower, one of the agency's interlocutors noted. 

The new iPhones are codenamed D16, D17, D63 and D64, Bloomberg points out. They are expected to be introduced earlier than last year, in September rather than October, thanks in part to a recovery in the supply chain, the agency noted. Continuing chip shortages should not affect production of the new iPhones, some of Bloomberg's sources said.

Because of the increased number of iPhones ordered, it can be assumed that Apple expects demand to rise, Bloomberg notes. Changes to the new smartphones this year will focus on the processor, camera and display, agency sources said. At least one version will have an LTPO display that is capable of changing the refresh rate of a picture depending on the content being displayed, Bloomberg said. Apple has been using this technology on the Apple Watch for several years, allowing the watch's display to be slower in certain situations and save battery life.