Apple Is Taking A Conservative Approach To 2019 iPhone Production Orders

The iPhone 11 series is only a week away and analysts at Cowen and Rosenblatt Securities believe that Apple is taking a fairly conservative approach this year when it comes to orders.

Apple aims to better manage excess stock in 2020

Apple Is Taking A Conservative Approach To 2019 iPhone Production Orders

The total number of units ordered this year by Apple’s assembly partners is not considered much greater than what was required twelve months earlier. In particular, the Cowen source suggests that Apple plans to produce a total of 65 million units for the fourth quarter of 2019, which is considered “flat” year after year. This figure is made up of 47 million iPhone 11 units and 18 million units combined with older models, such as iPhone XS and iPhone 8.

As for the second half of 2019 in terms of production volume, it is believed that Apple has ordered 79 million iPhone 11 units, which in reality are 7% less than the 85 million units iPhone XS and XR ordered the last year Cowen believes that the lower production rate is an attempt to better manage excess inventories while Apple is approaching 2020.

As far as can be gathered, Apple’s greater attention at this time in terms of production seems to be successfully serving the North American market before mid-December, when tariffs will be applied to Chinese imports. According to Rosenblatt, the Californian company has not yet made changes to the production levels of the iPhone 11 Pro and iPhone 11 Pro Max because “it has already been aggressive enough to create an inventory for the North American market”. However, Apple reportedly accelerated iPhone 11 (R) production in August due to higher upfront sales.

After December, new and old iPhone models imported from China will automatically be subject to the new 15% import tariff. The impact of this should be divided between Apple and its supply chain partners, although the “rapid depreciation” of the Chinese currency that is gradually lowering production costs should help offset the added cost for Apple slightly. However, it is expected that this will also affect the company’s profits and could lead to a decline in Chinese iPhone sales due to the retaliation of local customers.

Currently, consumers are not expected in the US. Don’t see any price increase, but the threat certainly exists. According to Rosenblatt, this could lead to a sudden increase in demand from consumers trying to avoid rates, which can translate into a quarter “stronger than normal seasonally” for Apple.

iPhone 11 series announcement, release date, and price

The iPhone 11 (R), iPhone 11 Pro and iPhone 11 Pro Max or as Apple calls them will be announced next Tuesday 10 September. Last year Apple opted for a staggered launch in which the iPhone XS Max series arrived in September and the cheapest iPhone XR followed in October, but this year it is expected that all smartphones will be launched simultaneously on Friday 20 September. To guarantee early delivery, Apple should open pre-orders one week before Friday, September 13th.

The iPhone 2019 line is said to be no different from last year. The cheapest iPhone 11 apparently will remain at the price of $ 749, while the iPhone 11 Pro premium seems to reach $ 999. Replacing the iPhone XS Max, on the other hand, should cost $ 1,099. Standard models must have 128 GB of storage space, although the 256 GB and 512 GB variants are expected to be sold at higher prices at retail.

Finally, when it comes to colors, the iPhone 11 will be sold in black, white, red, yellow, green and lavender. The iPhone 11 Pro and Pro Max, on the other hand, can be launched in gold, sidereal gray, silver, and a new dark green shade.

(Via: AppleInsider)

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