Apple Inc. has asked suppliers to make as many as 90 million next-generation iPhones this year, a sharp increase from 2020 iPhone shipments, according to people familiar with the matter.
Reported by Bloomberg, the Cupertino, California-based tech giant has maintained consistent production levels in recent years with a total of around 75 million units produced since the device's initial launch until the end of this year.
Improved forecasts for 2021 indicate that the launch of the first iPhone since the Covid-19 vaccine, will open additional demand. The phone will be Apple's second iPhone with 5G technology, the main attraction that drives users to upgrade their devices.
This year's update will be more gradual than last year's iPhone 12, emphasizing processor, camera and display upgrades, the people said, asking not to be named as the plans weren't made public.
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Apple is planning updates for all of its current models, including the regular 5.4-inch and 6.1-inch versions as well as the 6.1-inch and 6.7-inch Pro models. The phones, codenamed D16, D17, D63, and D64, will be announced in September, earlier than last year's October release thanks in part to a supply chain recovery.
At least one of the new versions will have an LTPO (low-temperature polycrystalline oxide) display capable of changing the refresh rate based on the content being displayed. Apple has used this technology on the Apple Watch for several years, allowing the screen to be slower in certain situations -- such as Always On mode -- to extend battery life.
Oppo, OnePlus and Samsung Electronics Co. already have an LTPO screen on their flagship phone. The new iPhones with LTPO displays will also use IGZO (indium gallium zinc oxide) technology to improve power efficiency and responsiveness.
While the design of the new Apple phone will remain largely unchanged, the company plans to reduce the size of the front camera and face unlock sensor cutout, or notch, to better match its competitors.
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The company hopes to eventually remove the notch completely in future versions of the iPhone and will likely shrink its size further next year. An Apple spokesman declined to comment.
Apple's camera upgrades will place the focus on more advanced video recording features such as improved optical zoom. An upgraded system-on-chip, built around the same six cores as the current A14 chip, will also be included. The company has been testing an in-display fingerprint scanner for devices this year, but that feature is unlikely to appear this generation.
While Apple has asked suppliers to build up to 90 million units, the actual number could be several million units below that target, one of the sources said. Huawei Technologies Co.'s smartphone business sanctions were a major factor in Apple's increase in shipping orders, according to others familiar with the strategy.
The ongoing chip shortage that has hurt operations in several global industries is not expected to affect future iPhone production, some said.
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Apple is the biggest customer of chipmaker Taiwan Semiconductor Manufacturing Co. and its huge orders made the launch of the new iPhones an annual event that suppliers across Asia had been planning for months in advance.