Apple to Push Manufacturers for Higher Supply to Cater for 75 Million Devices in 2019

While users are geared up for the next iPhone, Apple has other fish to fry. While the company is rated at a Trillion Dollars, this number took a serious hike after the launch of their first-ever, $999 flagship. Perhaps with the market so competitive and the competition so fierce with the likes of Samsung and OnePlus, the company seriously has to up its game.

Maybe that is why according to a report by Bloomberg, Apple has geared its suppliers for a serious production haul. Not only are they increasing numbers from previous years, but the number has risen to about 75 million units. This is not to say that Apple is making 75 Million units before the launch, no. But the company has requested the manufacturers for the production of components for these forecasted units. According to the report, not only has it increased job vacancies in these companies but these manufacturers would be paying the workers on the production line 10 percent more than last year. The report further elaborates that while this number is quite large, it is not set in stone and production could even go up to 80 million, depending upon the market, of course.

Foxconn happens to be one of the main manufacturers of Apple iPhones in China

What May this Mean?

While the report on its own is just a bunch of numbers and applied economics that may not spark much interest, there are a few implications for this choice. While Apple does enjoy a hefty market share, they have seen drops in their numbers lately. According to the leaks, there are no major changes in the iPhone 11 or XI lineup. Apart from a different camera bump, the newer model would not be looking any different. Somewhere where we will see a change (or ironically, not see it) would be with the internals.

The next lineup is supposed to be carrying a newer processor, dubbed as the A13 – still unsure on the suffix for the chip but for sure it will be both more powerful and more energy economical. Secondly, there would be revamped cameras, both on the back and the front side of the device. To cater to all these changes, Apple is looking to increase productions. Coming to those implications at this point, we see that Apple has good confidence in its upcoming devices. While all these devices share the same screen and resolution from previous models (looking at the XR and the XIR), that raises questions to what they may do differently this time around.

In my opinion, Apple will not be making any strides in the market, different from what they did the previous years if we do not see a price cut in the upcoming models. Now, while for the higher-end ones, it would be difficult for us to see them be cheaper, Apple can cut a hundred dollars off the R model. If they do, not only would it make the phone quite an attractive offer for the money, but it would also make people forget about the sub 720p screen that it supports. It would also pit it quite strongly against Samsung’s S10 E model which would surely spice up the market and pave way for more budget-friendly models where there is no compromise on the specs.

Sarmad Burki
Sarmad Burki is a Mathematician and a Economist with a passion for all things gaming and tech. His academics and professional experience combined with tech and gaming adds to his skills giving him a unique ability to observe the tech and gaming industry from various prespectives.