Apple ramps up iPhone 17 production amid high demand
What's the story
Apple has decided to ramp up the production of its latest iPhone 17 model, following a stellar response during the pre-order phase. The tech giant has asked Luxshare Precision to increase their output by about 40% and another supplier to increase by roughly 30%, according to The Information. This move indicates that consumers are leaning toward the regular iPhone 17 over its pricier Pro counterparts.
Feature upgrade
Standard model now offers features previously exclusive to Pros
The standard iPhone 17 now comes with screen and camera upgrades that were once exclusive to Pro models. This development has narrowed the gap between Apple's entry-level device and its higher-priced counterparts. The shift highlights how even a company like Apple, which is known for steering customers toward its high-margin devices, is facing more price-sensitive demand from consumers.
Market shift
Annual strategy to adjust production orders
Apple's decision to boost production of iPhone 17 comes as part of its annual strategy to adjust production orders based on actual demand. Earlier this year, The Information reported that Apple expected the standard iPhone 17 to account for 25% of total production, with iPhone 17 Pro and Pro Max making up 65% and iPhone Air taking up the remaining 10%.
Growth plan
Struggle with infrequent upgrades
Apple is betting that its new iPhone lineup, including a thinner "iPhone Air," will revive growth in the flagship product after years of lackluster sales. The company has been struggling with consumers upgrading less frequently and new models offering only incremental improvements. However, analysts have warned that sales of lower-priced models could impact Apple's profit margins while helping it retain market share.