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(Bloomberg) – Apple Inc. has asked vendors to make at least 75 million 5G iPhones by the end of this year, roughly in line with last year’s launch, in a sign that demand for the most important product in the world. company remains amid the global pandemic and recession.
The Cupertino, California-based tech giant anticipates that shipments of these next-generation iPhones could hit 80 million units in 2020, according to people familiar with the situation. Apple plans to launch four new models in October with fifth-generation wireless speeds, a different design and a wider selection of screen sizes, said the people, who asked not to be identified when discussing unannounced products.
Between a comprehensive product update in the fall, Apple is also preparing a new iPad Air with an edge-to-edge iPad Pro-like display, two new versions of the Apple Watch, and its first on-ear headphones outside of the Beats brand. Work is also in the works on a smaller HomePod speaker. An Apple spokeswoman declined to comment.
Apple and its manufacturing partners always increase production before the launch of new iPhones each fall. In the summer of 2019, vendors were gearing up to make components for up to 75 million phones. The 2018 target was similar, so this year’s target of 75 million to 80 million units is a bullish sign. Key assembly partner Hon Hai Precision Industry Co., also known as Foxconn, has posted several notices on WeChat over the past month to recruit workers for its main iPhone campus in the central Chinese city of Zhengzhou.
While the Covid-19 outbreak has hit the global economy and disrupted supply chains, Apple is seeing strong demand for iPhones, iPads, and Mac computers from people who work and study remotely. Revenues from iPhones crushed Wall Street expectations in the most recent quarter. The device still generates nearly half of Apple’s sales, and that often tops 60% around the holiday season. Shares of Apple have soared 76% this year, making it the first American company to exceed $ 2 trillion in market value.
The four new phones will be divided into two entry-level and two high-end models for the first time, and all will feature OLED displays with improved colors and clarity. The two regular iPhones will come in a new 5.4-inch size and a 6.1-inch option, while the Pro devices will offer a choice of a 6.1-inch screen or a 6.7-inch expanded screen, which will be the largest ever installed by Apple. . An iphone.
All new smartphones will have updated designs with square edges similar to the iPad Pro, and high-end phones will continue to use stainless steel edges instead of aluminum sides in the cheaper variants. The company also plans a dark blue color option on Pro models to replace the Midnight Green of the 2019 iPhone 11 Pro line.
At least the largest of the Pro phones will have the same LIDAR camera as on the latest iPad Pro, allowing augmented reality apps to better understand the environment around them. Among the most significant enhancements to the new phones is the new A14 processor, which improves speed and energy efficiency.
Some Apple employees testing the new devices think the new 6.7-inch display is one of the most notable improvements this year, people familiar with the situation said. Some testers have also found that some of today’s 5G networks aren’t improving connection speeds much, the people added.
Apple plans to ship lower-end phones before Pro devices, according to people familiar with the tiered launch strategy. During a recent conference call, Apple said the new iPhones would ship “a few weeks” later than last year’s models, which began shipping on September 20. This year’s launch is going to be the last since the iPhone X was launched in November. 2017.
The design of this year’s iPhones and many features were finished before Covid-19 spread, but the pandemic created problems for final testing and delayed the start of production by several weeks. While the new iPhones won’t ship until later, Apple’s iOS 14 software will arrive in September, the people said.
The new Apple Watch lineup will include a successor to the Apple Watch Series 5 and a replacement for the Series 3 that will compete with lower-cost fitness devices such as those from Fitbit Inc.
The smaller HomePod will help Apple renew its push toward the smart home at a lower price point, albeit with fewer speakers inside the device than the current $ 299 model. While the first HomePod was praised for its audio quality, consumers have criticized its limited Siri functionality and price. Earlier this year, Apple merged some of the Apple TV and HomePod engineering teams as it seeks to renew its focus on home devices.
Apple has also been developing a new Apple TV box with a faster processor for improved games and an updated remote, however that device might not ship until next year, according to people familiar with its development. The company is working on a feature for the new remote control similar to Find My iPhone that would make finding the TV accessory easier. The company’s other product in development is called AirTags, designed to locate physical items, which will be equipped with a leather case, Bloomberg News reported.
© 2020 Bloomberg LP
