Apple Reportedly Boosts iPhone 11 Component Orders But Cuts Them for iPhone 11 Pro Max

[MacRumors]

Apple has reportedly boosted component orders for the iPhone 11 after better-than-expected demand but reduced those for the iPhone 11 Pro Max after flat sales of the larger device, according to sources from Taiwan's supply chain (via DigiTimes).

Apple has increased iPhone 11 components orders by 15%, and cut those for iPhone 11 Pro Max by about 5%, the sources said.

Today's report corroborates a similar report earlier this month that said iPhone 11 and iPhone 11 Pro are seeing the strongest demand, with Apple revising orders for the iPhone 11 Pro Max down slightly to balance production with demand.

DigiTimes' sources speculate that brisk iPhone 11 sales could influence Apple's 2020 iPhone plans, suggesting the company could choose to keep an LCD-based smartphone in next year's flagship lineup instead of adopting OLED wholesale.

According to reliable Apple analyst Ming-Chi Kuo, Apple intends to complete its transition to an all-OLED iPhone lineup in 2020 with new 5.4-inch, 6.1-inch, and 6.7-inch devices.

Kuo also believes Apple will sell around 10 percent more iPhones in the first quarter of 2020, thanks to strong replacement demand for its iPhone 11 series devices and the launch of the "iPhone SE 2" in March.

In addition, sources in today's report indicate that King Yuan Electronics (KYEC) continues to see strong demand for Intel baseband chips that Apple uses for the iPhone 11, iPhone 8 and iPhone XR.

At the beginning of October, Apple reportedly asked suppliers to increase production of its new iPhone 11 and iPhone 11 Pro lineup by up to 10 percent, adding up to 8 million units to its earlier production plans as it sought to meet better-than-expected demand.

Article Link: Apple Reportedly Boosts iPhone 11 Component Orders But Cuts Them for iPhone 11 Pro Max

 

[kerr]

Apple might think people are happy to pay $500, $1000, $1500, $2000 for a phone. They would be wrong.

 

[PickUrPoison]

Apple might think people are happy to pay $500, $1000, $1500, $2000 for a phone. They would be wrong.

Well a couple hundred million every year do exactly that. So I think you’re wrong.

 

[realeric]

I expected it. $1,100 for a phone is way too much. I’ve purchased iPhone 3G, 3GS, 4, 4s, 5, 5s, 6, 6s+, 7, 7s+, Xr, on launch day. I have an engineer job, a house paid off, two brand new Mercedes cars paid off, but I still think $1,100+ is too much for a phone.

 

[Agit21]

Well a couple hundred million every year do exactly that. So I think you’re wrong.

So why dont they report the actual iPhone sales figures?

 

[drew keys]

Same story every quarter and then earnings paint a different picture 🤷‍♂️

 

[PickUrPoison]

So why dont they report the actual iPhone sales figures?

Maybe because no one else does, or they’re not required to? Because financial analysts are overly-focused on it when it’s not particularly relevant? What’s your theory?

Gartner, IDC, Strategy Analytics, Canalys and Counterpoint Research, among others, provide estimates for Apple and many others in the market.

But what’s your point anyway? You don’t think Apple’s customers are willing to pay the prices they ask?

 

[sulpfiction]

I expected it. $1,100 for a phone is way too much. I’ve purchased iPhone 3G, 3GS, 4, 4s, 5, 5s, 6, 6s+, 7, 7s+, Xr, on launch day. I have an engineer job, a house paid off, two brand new Mercedes cars paid off, but I still think $1,100+ is too much for a phone.

I think we’re just becoming jaded about what we’re actually holding in our hands. If for some reason u were locked away for the last 12 years and had no clue about smartphones and someone brought u an iPhone 11 and a list of everything it could do, I bet you would say $1100 was a bargain.

 

[miniyou64]

I think we’re just becoming jaded about what we’re actually holding in our hands. If for some reason u were locked away for the last 12 years and had no clue about smartphones and someone brought u an iPhone 11 and a list of everything it could do, I bet you would say $1100 was a bargain.

But we don’t exist in that world. The price is relative to now. Not “what if you never saw an iPhone before...”

 

[PickUrPoison]

I expected it. $1,100 for a phone is way too much. I’ve purchased iPhone 3G, 3GS, 4, 4s, 5, 5s, 6, 6s+, 7, 7s+, Xr, on launch day. I have an engineer job, a house paid off, two brand new Mercedes cars paid off, but I still think $1,100+ is too much for a phone.

Not everyone wants a 6.5” iPhone, but for those who want a smaller or less expensive model, they can get the 5.8” for $999, or the 6.1” for $699. Or the iPhone 8 for $449, for that matter. Soon, maybe the $399 4.7”—with the same A13 processor as the $1,100 11 Pro Max—rumored to be coming in a few months.

$399, $699, $999/1,099. Good, better, best (two sizes of “best”, but identical features otherwise). Brilliant.

PS Same as the iPad strategy. $329, $499, $799/999. Good, better, best (again, in two sizes at the “best” tier). Simple, no?

That’s one of the reasons Apple’s stock price is at an all-time high. Thanks Tim Apple!

 

[Ramchi]

When iPhone 11 is around buying Pro and Pro Max when new 5G mobiles in the next year may not be a wise decision for buyers. I bought iPhone 11 128 Lavender precisely for this reason. Though not cheaper when compared to 6.5 Inches AMOLED mobiles in android world(I could have bought ASUS ROG Phone 2 512 GB 12 GB RAM still saved $50 in my place) it makes value bargain in the new lot from Apple. It has almost everything from performance point, lacks AMOLED and an additional camera! Yes, advantage of all Dual SIM sufficiently larger display. I could only spend this much on any mobile for that matter.

Looking back my last iPhone purchases which costed me $1400-$1600(iPhone 6+ & iPhone 7+ 128 GB editions) iPhone 11 has more to offer like compatible with my Samsung wireless charger, excellent camera, the best performing SoC(that includes iPhone 11 Pro & 11 Pro Max), bigger battery, bigger display, this is an excellent bargain

 

[Agit21]

But what’s your point anyway? You don’t think Apple’s customers are willing to pay the prices they ask

The point is they sell less and less devices because prices are too high. It’d be better if the iPhone X and successor wouldn’t be so expensive.

 

[one more]

Not surprised. iPhone 11 starts at 699$, iPhone Pro Max - at 1099$. For the majority of customers iPhone 11 is perfectly adequate, so they get that and a spare 400$.

 

[TopherMan12]

So higher demand for the 11 Pro over the Max. I'm wondering if that has more to do with $100 difference or people simply preferring the smaller form factor.

The point is they sell less and less devices because prices are too high. It’d be better if the iPhone X and successor wouldn’t be so expensive.

You do understand what "better-than-expected demand" means, right?

 

[1144557]

Apple might think people are happy to pay $500, $1000, $1500, $2000 for a phone. They would be wrong.

The sales numbers would disagree with you for what "people" will do. Tens of millions are buying the phones. What you would or wouldnt do has nothing to do with all people.

I expected it. $1,100 for a phone is way too much. I’ve purchased iPhone 3G, 3GS, 4, 4s, 5, 5s, 6, 6s+, 7, 7s+, Xr, on launch day. I have an engineer job, a house paid off, two brand new Mercedes cars paid off, but I still think $1,100+ is too much for a phone.

Prospective. I use my phone for business (more than 1 business in fact), a tool that makes money. I do 99.5% of my email on it, Google voice business numbers, etc. The $45/month on 0% interest financing through the carrrier pays for itself hundreds of times over in profit monthly. It is a drop in the bucket to me, but that is from my perspective.

If it is bought as a bordem toy, then yes, $1000-1500 is "high" relatively.

For retrospect, the iPhone 6 Plus in 2014 (and 6S Plus in 2015) launched at $850 for the 64gb model. The current "big" phone is 64gb and $1099. The highest selling phone line of all time (the 6/6 Plus) was not far off the current price range we sit in now for phones.

And in my book the 11 Pro Max is certainly all of $250 better than a 6 Plus/6S Plus to cover that price increase.

And the iPhone 11, which is basically a "Plus" phone, is $699 and way cheaper than the old Plus phones with better specs, bigger/better LCD screen, etc for the same storage tier.

 

[PickUrPoison]

The point is they sell less and less devices because prices are too high. It’d be better if the iPhone X and successor wouldn’t be so expensive.

No they sell somewhat fewer devices because people are keeping them longer. The replacement cycle is now three to four years.

Yet Apple still sells 200+ million iPhones, at higher ASPs than before the X/XS/11 models were available. So apparently they aren’t too expensive.

 

[m0sher]

The increase in sales is related to the amazing upgrade to camera and battery life which is a worthy reason for a lot of people with a 2 yr old phone or older to upgrade.

 

[cocky jeremy]

Makes sense. The hardcore iPhone people go with the Pro Max, and those people buy at or near launch. The more casual iPhone fans go with the 11/11 Pro and buy throughout the year.

 

[Sasparilla]

This makes sense. The Xs Max last year grabbed a huge amount of purchases and for alot of those people, the 11 Pro Max doesn't offer a compelling upgrade (since its only a year it shouldn't for most folks). The folks with the original X's are two years in and upgrading to the 11 Pro.

Nice to see the 11 knocking it out of the part.

 

[Remy149]

Apple might think people are happy to pay $500, $1000, $1500, $2000 for a phone. They would be wrong.

There are plenty of costumers like myself who are happy paying the extra money for the pro models. However I’m sure like me they are mostly early adopters and not the masses who will be happy with the 11 and upgrade when their contract allows it.

 

[nburwell]

So consumers want to save money and opt for the 11 instead of the $1K+ 11 Pro Max. Makes sense to me.

 

[Mike MA]

My wife owns an iPhone XR, honestly I see zero to none difference to my iPhone XS as for my daily use case. As for the iPhone 11 with the extended camera options, this will obviously convince even more people.

 

[mguzzi]

My wife owns an iPhone XR, honestly I see zero to none difference to my iPhone XS as for my daily use case. As for the iPhone 11 with the extended camera options, this will obviously convinces even more people.

Yep - I went from an iPhone X to an iPhone 11 and I don't miss the OLED Screen. However I really like the new camera system and having the extra screen size. Plus the iPhone 11 and iPad Pro use the same Liquid Retina display technology.

 

[zehoo]

They should of put OIS on the ultra wide for the pro max. But then I suppose they need something other than 5G for next year.

 

[44267547]

The point is they sell less and less devices because prices are too high. It’d be better if the iPhone X and successor wouldn’t be so expensive.

I don’t know about your statements here. It’s not just Apple, all the smart phones are generally expensive today. But with the help of carrier financing, does it really matter what these prices are for some who want the latest devices? They’re not paying ‘out-of-pocket’ full price, they’re taking a advantage of the monthly payment options through a trade-in program to have the latest device.

I don’t disagree that phone prices are too high, because they are expensive, but the difference being, the ‘latest’ technology all comes at a cost now, if you want a cheaper phone, there are cheaper options on the market.