Apple asked vendors to assemble at least 75 million iPhones with 5G support this year, which is roughly the same as at the time of last year’s launch and indicates that demand for the company’s most important product is still strong despite the coronavirus pandemic and economic recession.
The company expects shipments of the new generation iPhone in 2020 to reach 80 million units, Bloomberg said, citing knowledgeable sources. Apple plans to release four new models in October. They will support 5G and differ in design from the previous models, with customers having a wider choice of screen sizes.
Apple is also preparing to release the new iPad Air with a screen similar to the iPad Pro, two new versions of Apple Watch and the first full-size earphones not associated with the Beats brand. The company is also working on a new, more compact version of the HomePod speaker.
Apple and its partners are increasing production in anticipation of the release of new models of iPhone every autumn. In the summer of 2019 suppliers were preparing to produce components for 75 million smartphones, the same was the target in 2018. The current target in the range of 75 million to 80 million is an optimistic sign, writes Bloomberg.
Although the coronavirus pandemic has damaged the global economy and caused disruptions in supply chains, Apple notes strong demand for iPhones, iPads and Macs from customers working remotely. Last quarter’s iPhone revenue surpassed experts’ expectations. The device still accounts for about half of Apple’s total revenue, and during the holiday season this figure often exceeds 60%.
During the preliminary trading on Tuesday, Apple shares rose by 1.8%. Since the beginning of the year they jumped by 76%, the iPhone maker became the first American company with a market value exceeding $2 trillion.
Apple this year plans to release new models of iPhone a few weeks later than usual, Bloomberg reported earlier with reference to the Chief Financial Officer of Apple Luca Maestri.
The company traditionally presents the new iPhone in September. Thus, last year the line of new smartphone models was presented on September 10, and on September 20 gadgets went on sale. In 2020, the new iPhone may appear in October, and not in September, wrote Bloomberg.