Desk Report:
Apple has ordered suppliers to increase production of the base model of its new-generation iPhone 17 by at least 30 percent. The tech giant took the decision after strong pre-orders began last week. The information emerged in a report by ‘The Information’ on Friday.
The report said that more customers than expected are choosing the $ 799 iPhone 17 over Apple’s premium Pro models; where the Pro models start at $ 1,099 and use higher-quality materials, cameras, processors and displays.
‘The Information’ reported that Luxshare, a Chinese company that assembles the iPhone, has been asked to increase daily production by about 40 percent. However, Apple did not immediately comment on this.
Analysts say that the new iPhone 17 lineup is expected to boost sales as it includes a slim model called ‘iPhone Air’. As smartphone sales have stagnated in the past few years and new versions have received very few feature updates, customers have been upgrading less.
On the other hand, Apple’s new entry-level iPhone 17 has added some screen and camera upgrades that were previously only available on the Pro model. As a result, the difference with the Pro model has been greatly reduced.
Apple has always wanted to attract its customers to higher-priced devices, but now the decision is changing under pressure from a price-sensitive market. This raises the question of how much business growth Apple can sustain by relying solely on premium upgrades.
According to analysts, even if sales of low-priced models increase, it could negatively affect Apple’s profit margins. However, this could give the company some advantage in the fight to capture the market.
