Apple Suppliers Preparing for Up to 75 Million iPhone Orders This Year: Report

Bloomberg reports Apple suppliers are ready to make parts for up to 75 million iPhones this year:

Apple Inc.’s suppliers are preparing to produce components for up to 75 million new iPhones in 2019’s second half, roughly the same number as a year earlier, according to people familiar with the matter.

Unnamed sources told Bloomberg three new iPhone models will debut in 2019, with Asian supply chain partners ready to produce enough parts for up to 80 million new iPhones, if necessary.

Foxconn has ramped up hiring efforts in Shenzhen, China, with incentives of 10% higher salaries compared to last year, to secure staff for the busy holiday production period, cites another unnamed person familiar with the matter.

Analysts such as Jeff Pu at GF Securities estimates Apple’s 2019 iPhones may hit 74 million shipments in the latter half of this year.

“Apple’s growth has become more cyclical and slowed along with the global smartphone market, leaving it dependent on iPhone upgrades to drive sales,” according to Bloomberg Intelligence analysts John Butler and Boyoung Kim. “Apple’s inability to raise iPhone prices much higher is constraining growth. Weakness in China due to competition and the trade war with the U.S. remains an issue.”

This year’s 2019 iPhones are said to include three cameras on the back for successors to the iPhone XS and iPhone XS Max, introducing a wide-angle lens for the first time. The iPhone XR successor will gain an extra lens, for a total of two lenses. All phones will get upgraded A13 processors. Design-wise, they are expected to look pretty much the same as 2018 iPhone models.

Apple will most likely again unveil their 2019 iPhone line up at a special event in September. Stay tuned as more leaks surface leading up to the event.