AAPL.US (AAPL) is seeking a 20 per cent increase in production of its new iPhone in 2021, Zhitong Financial APP has learned. Apple has asked suppliers to produce as many as 90 million new-generation iPhone units this year, a sharp increase from iPhone shipments in 2020, according to people familiar with the matter.
In recent years, Apple has maintained a shipping level of about 75 million phones from its launch to the end of the year. The revised 2021 forecast indicates that the company is expected to launch its first iPhone since the launch of the COVID-19 vaccine, which will unleash additional demand. The new iPhone will be Apple's second 5G phone, which is a key incentive for users to upgrade.
According to previous information, Apple will upgrade more this year than last year's iPhone 12, with more emphasis on improvements in processors, cameras and screens. Apple is planning to update all current models, including the regular 5.4in and 6.1in models and the 6.1in and 6.7inch Pro models. The phones, codenamed D16, D17, D63 and D64, are expected to be released in September, earlier than last October, thanks in part to a recovery in the supply chain.
At least one new version will be equipped with a LTPO (low temperature polycrystalline oxide) screen, which can change the refresh rate according to what is displayed. Apple has been using this technology in the Apple Watch for several years, in some cases allowing the screen to slow down, such as Always On mode, to extend battery life. Flagship phones such as OPPO, OnePlus and Samsung Electronics have adopted LTPO screens. The new iPhone with LTPO screen will also use IGZO (indium gallium zinc oxide) technology to improve power efficiency and response speed.
While the design of the new iPhone will remain largely the same, the company plans to reduce the size of the front camera and bangs for unlocking sensors to better compete with other smartphones. The company hopes to eventually eliminate bangs completely in future versions of iPhone and may downsize further next year.
Persistent chip supply shortages have disrupted operations in several industries around the world, but are not expected to affect upcoming iPhone production. Apple is the biggest customer of TSMC, a major chipmaker, and its huge orders make the launch of the new iPhone an annual event planned by suppliers across Asia months in advance.
Lixun Precision, a Chinese assembly partner, will play a bigger role this year after the company acquired the iPhone assembly facility from Willon. It is reported that Foxconn will continue to be the main assembler of 6.7in Pro Max models, 6.1in Pro orders will be split equally with Lixun, and 6.1inch ordinary iPhone orders will be split equally with Pegatron. Hutchison is expected to produce all the 5. 4-inch iPhone.
In addition to the new iPhone, Apple plans to launch several other products later this year, including the new MacBook Pro laptop with custom Apple chips, the redesigned iPad mini and entry-level iPad models, and the Apple Watch with updated screens. Apple plans to start producing a new MacBook Pro in the third quarter after the company faced a number of MiniLED screen-related problems that also challenged the release of the latest iPad Pro.
In order to solve the supply problem of the MiniLED, Apple has hired Lixun Precision to share the order for the necessary MiniLED components of the new MacBook Pro with Watch Technology. Previously, Table Technology was the main supplier of this iPad Pro component.