(Bloomberg) – Apple Inc. asked suppliers to build at least 75 million iPhone 5Gs later this year, roughly according to last year’s release, as a sign that demand for the company’s most important product is being kept in the middle of a global pandemic and recession.
California tech giant Cupertino predicts shipments of these next-generation iPhones could reach 80 million units by 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 choice of screen sizes.
In the midst of a complete product update in the fall, Apple is also preparing a new iPad Air with edge-to-edge iPad Pro display, two new Apple Watch versions and the first non-Beats over-ear headphones. A smaller HomePod speaker is also in development. An Apple spokesman declined to comment.
Silicon Valley giant suppliers rose on Tuesday. Taiwan Semiconductor Manufacturing Co. and LG Display Co. closed by 2%, the lens supplier Largan Precision Co. headphone maker Goertek Inc. rose 4.1%. gained 2.1%.
Apple and its partners always increase production before the release of new iPhones every fall. In the summer of 2019, suppliers were preparing to make components for up to 75 million devices. The target in 2018 was similar, so this year’s target of 75 million to 80 million units is a bullish sign. The key iPhone assembly partner, Hon Hai Precision Industry Co., also known as Foxconn, submitted several alerts to WeChat last month about hiring employees for its main iPhone campus in the central Chinese city of Zhengzhou.
While the Covid-19 outbreak has forged the global economy and disrupted supply chains, Apple is seeing strong demand for iPhones, iPads and Macs from people working and studying remotely. IPhone revenue shattered Wall Street expectations in the last quarter. The device still produces almost half of Apple sales, and this often exceeds 60% during the holiday season. Shares of Apple rose 76% this year, making it the first US company to surpass the $ 2 trillion mark.
The four new phones will be divided into two basic and two high-end models for the first time and all will have OLED screens with improved color and clarity. The two regular iPhones will be available in a new size of 5.4 inches and a choice of 6.1 inches, while the Pro devices will offer a choice of 6.1 inches or 6.7 inches, which will be the largest ever installed. at Apple an iPhone.
All new smartphones will have updated square-edge designs similar to the iPad Pro, and high-tech phones will continue to use stainless steel edges versus aluminum sides in the cheaper variants. The company is also planning a dark blue option on Pro models to replace the Midnight Green line of the 2019 iPhone 11 Pro.
Read more: Apple plans design of iPad for the next iPhone, smaller HomePod
At the very least Pro phones will have the same LIDAR camera as the latest iPad Pro, which allows augmented reality applications to better understand their environment. Among the most important improvements of the new devices will be the new A14 processor, the upgrade of speed and power efficiency.
Some Apple employees who are testing the new devices believe that the new 6.7-inch screen is one of the most notable improvements of this year, said people familiar with the situation. Some testers have also found that some of the current 5G networks do not significantly improve connection speeds, people added.
Apple plans to ship lower-end phones earlier than Pro devices, according to people familiar with the phasing-out strategy. During a recent conference call, Apple said the new iPhones would be released “a few weeks” later than last year’s models, which began shipping on September 20th. This year’s release will be the last since the release of the iPhone X in November. 2017.
The design of this year’s iPhone and many operations were completed before the Covid-19 spread, but the pandemic created problems for final control and delayed production by several weeks. While the new iPhones will not be shipped later, Apple’s iOS 14 software will arrive in September, people said.
Read more: Apple’s privacy culture Tested by employees working remotely
The new Apple Watch series will include a successor to the Apple Watch Series 5 and a replacement for the 3 Series that will compete with lower-cost fitness equipment such as Fitbit Inc.
The smaller HomePod will help Apple refresh its smart home push at a lower price, albeit with fewer speakers in the device than the current $ 299 model. While the first HomePod was praised for its sound quality, consumers have watched limited functionality and price of Siri. Earlier this year, Apple merged some of the Apple TV and HomePod app groups as it appears to be refreshing its focus on home appliances.
Apple has also developed a new Apple TV box with a faster processor for improved gaming and an upgraded remote control, but this device may not be shipped 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 will make it easier to find the TV accessory. The other product of the company that is in progress is called AirTags, designed to locate natural objects, which will be equipped with a leather carrying case, according to Bloomberg News.
(Market reaction updates in the fourth paragraph)
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