“Previously, Apple was quite conservative about placing orders”, which were less than for last year’s new iPhone, a source told Nikkei. “After the increase, prepared production volume for the iPhone 11 series will be higher compared to last year.”
The lower-priced iPhone 11 models are selling faster the iPhone 11 Pro Max, which has a starting price of $1,099.
“Demand is good for now. But we have to be careful not to be too optimistic,” a source told Nikkei. “I hope that this year’s peak season lasts longer than last year.”
On Oct. 11, Apple CEO Tim Cook told the German newspaper Bild that the latest model enjoyed a “very strong start.”
JPMorgan upped its estimate of how many iPhones would sell before the end of this year to one million more sales than forecasted earlier. It also raised Apple’s target price.
Both bits of good news set off a mini-rally in Apple’s share price, pushing the company’s market capitalization over $1 trillion. Apple’s suppliers in Europe also got a boost from the positive spin.
The iPhone 11, iPhone 11 Pro and iPhone 11 Pro Max, priced between $699 and $1,099, hit stores Sept. 20. The phones have enhanced processors and improved cameras but are not 5G-enabled.
Pre-sales for the new iPhone beat expectations and topped last year’s pre-orders for the same time period. Independent research conducted by Wall Street analysts showed that first-weekend sales point to a healthy start and could offset the reduced pricing of the iPhone 11.
Apple Analyst Ming-Chi Kuo of TF International Securities also said the appetite for new iPhones is ahead of his expectations with brisk pre-sales from Chinese buyers. Kuo increased his iPhone 11 series shipment forecast from 65-70 million units in 2019 to 70-75 million units, while noting the supply chain will “grow steadily” in the fourth quarter.