Cupertino-based technology giant Apple has increased the production of its newly launched smartphone iPhone 11 by up to 10%. According to a report by Nikkei Asian Review, the company has raised the production of devices by 8 million units resulting in better-than-expected demand.
According to a Japanese online portal Nikkei Asian, the biggest reason behind the increased in the productivity of the iPhone 11 is the new marketing strategy of Apple CEO Tim Cook of tempting more budget-conscious consumers by offering them cheaper models.
The production increase of between 7 million and 8 million units is similar to total annual phone shipments this year by Apple’s rival Google in its home market.
The report said “This autumn is so far much busier than we expected. Previously, Apple was quite conservative about placing orders,” which were less than for last year’s new iPhone. “After the increase, prepared production volume for the iPhone 11 series will be higher compared to last year,”
Earlier in September Apple launched its three new iPhone models — the iPhone 11, iPhone 11 Pro, and iPhone 11 Pro Max. The company for the first time introduced its new devices at a reduced price due to last year’s disappointing results in Apple’s slow sale.
Keeping the price factor in mind, Cook’s new budget-conscious strategy came to its rescue. In the past, the CEO also accepted that due to the high price Apple faced slow sales, especially in emerging markets. Recently to a German newspaper, Bild, Cook expressed his excitement over the iPhone 11 launch and that its sales had enjoyed a “very strong start.”
“One factor that may have helped boost demand temporarily is that Apple’s iPhone 11 is still produced in China, and Washington has temporarily postponed a planned 10% tariff on China-made electronic imports. The delay in the tariff hike, from September to December 15, will help demand during the Thanksgiving and Christmas shopping seasons. Donald Trump has hardened his posture on trade talks with China, saying in September he did not want an interim truce.”
The report also mentioned that the 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,” one executive-level source said in the report. “I hope that this year’s peak season lasts longer than last year.”
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